NEW YORK, NY/ACCESSWIRE/May 23, 2022/ Pomerantz LLP is investigating claims on behalf of Lyft, Inc. (“Lyft” or the “Company”) investors LYFT. Such investors are encouraged to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation focuses on whether Lyft and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.
[Click here for information about joining the class action]
On April 29, 2022, post-market, Lyft filed a Form 8-K with the United States Securities and Exchange Commission stating that “[a]s in connection with the preparation of the first quarter 22 consolidated financial statements of Lyft, Inc. [. . .] an error was identified in the accounting for losses ceded under the quota share reinsurance arrangement [. . .] with DARAG Bermuda LTD [. . .]under which DARAG reinsured a portfolio of former automobile insurance policies.” The Form 8-K further stated that “[a]As a result of this error, on April 28, 2022, the Audit Committee [. . .] of Lyft’s Board of Directors, after discussion with Company management, has concluded that Lyft’s consolidated financial statements as of and for the year ended December 31, 2021 – and the related audit report of PricewaterhouseCoopers LLP – included in its 2021 Annual Report on Form 10-K [. . .] as well as the company’s condensed consolidated financial statements as of and for the three months ended September 30, 2021 (and for the nine months ended on that date) included in its Form 10-Q for the third quarter of 2021 should no longer be relied upon. Form 8-K revealed that “[a]As a result of this restatement, Lyft’s management has reassessed the effectiveness of the Company’s disclosure controls and procedures and its internal control over financial reporting as of December 31, 2021. Management has concluded that the company’s disclosure controls and procedures were not effective. as of September 30, 2021 and December 31, 2021, and its internal control over financial reporting was not effective as of December 31, 2021.”
On this news, Lyft’s stock price fell $1.10 per share, or 3.37%, to close at $31.50 per share on May 2, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
THE SOURCE: Pomerantz LLP
See the source version on accesswire.com: