SAN FRANCISCO: Snap Inc’s IPO honeymoon in 2017 gave way to investor lawsuits within 10 weeks. Such lawsuits are a rite of passage for newly public companies, and have become even more common after the 2008 financial crisis, according to Cornerstone Research. The standard claim is that the company’s officers and underwriters overhyped its prospects, leading to investor losses when when the truth comes out and the stock tanks. Since going public, Lyft has declined 19% to US$58.36. Experts say that while the first Lyft lawsuits were on the quick side, some companies have been sued even sooner after their IPOs.

Source: The Star April 22, 2019 01:18 UTC