The lawsuit, filed in San Francisco federal court on Friday, claims the company deceived investors about its ridesharing position, bicycle safety issues and labor matters, as first reported by Reuters. Those misleading statements allegedly inflated the share price – and investors are saying they lost money when the stock fell.
Not only is the company being sued for securities fraud, so are some of its officers and directors – as well as the underwriters of the IPO. It is a class action suit.
A spokesperson for the company did not immediately return FOX Business' request for comment.
Lyft made its public trading debut on the Nasdaq in late-March, when shares surged above the $72 per share they had been priced at. The stock began trading at more than $87 per share, 20 percent over what it had been priced at.
As of Friday, shares were trading shy of $54. They are down more than 4 percent over the past month.
Meanwhile, shares of rival Uber began trading last week, at $45 per share. Shares have since dropped to around $41 per share. According to The New York Times, it made the stock market debut that lost more in dollar terms than any other IPO since 1975.