Lyft’s Earnings Gaffe Draws Investor Suit Over 46-Minute ‘Fraud’

On Tuesday, an investor filed a proposed class-action securities suit over the typo in a Feb. 13 company press release that caused the stock to briefly surge 67% in after-hours trading.

The complaint filed in San Francisco federal court alleges the ride-share company defrauded investors when it mistakenly said it expected adjusted earnings margins, calculated as a percentage of bookings, to expand by 500 basis points — when it was actually 50 basis points.

The gaffe was corrected within an hour and attributed to a “clerical error,” but shareholder Yuan Chen claims he bought 20,000 shares during the 46 minutes that the stock traded at “artificially inflated” prices.

Source: Lyft’s Earnings Gaffe Draws Investor Suit Over 46-Minute ‘Fraud’