Lyft's Initial Public Offering Becomes More Complicated Thanks to Two Investor Class Actions Brought by Investors

The initial headaches for Lyft's public offer only worsened.

Bloomberg said Wednesday that after the Lyft IPO, which did not go very well, the company is currently investigating two separate lawsuits from its investors. At the time the company went public last month, Lyft's shares were initially priced at $ 72. But soon after, the stock price began to fall – and continued to decline – with the company at 58.36 dollars from Thursday.

According to Bloomberg, investors assert in their lawsuits – both of which were filed in San Francisco court – that Lyft's claim to a 39% market share was may be not quite in line with reality.

The lawsuits also reportedly accused the company of not alerting investors before the recent recall of its electric bike, another problem it is currently facing (apart, of course, from the current controversy over Lyft's work practices).

A spokesman for Lyft declined to comment on the lawsuits.

Earlier this week, it was announced that Lyft was withdrawing its recently acquired e-bike fleet from New York, San Francisco and Washington, while braking problems had been reported, some of which had caused injuries to a runner.

A spokeswoman for Citi Bike, operated by Lyft's Motivate, told Gizmodo by e-mail that following "a small number of reports and as a precaution, we are proactively stopping our e-bikes". The company said it was working to replace electric bikes on all three markets with regular bicycles in the meantime in order to avoid service interruptions.

In short, the very bad Lyft week has become even more complicated.

[Bloomberg]