Lyft has threatened litigation against Morgan Stanley, accusing the firm of supporting short-selling for investors who are subject to lock-up agreements.
Lyft asked for Morgan Stanley to be on record saying that they did not create such a product, and that they had engaged in the proper due diligence in marketing such a product. The letter, which copied Lyft's lead underwriters JP Morgan and Credit Suisse, also asks that if Morgan Stanley did engage in such activity that they stop immediately and turn over a list of shareholders who participated.
The Information first reported that Lyft and its IPO syndicate had sent a letter to Morgan Stanley over its purported role in creating special instruments for pre-IPO investors to short. "Our firm's activity has been in the normal course of market-making, and any suggestion that Morgan Stanley has engaged in an effort to apply 'short pressure' to Lyft is false," the spokesperson for Morgan Stanley said.
this is hilarious ... only one week being a publicly traded company... short selling is a part of the trading...
Could someone explain to me like I’m 5 why a company cares so much about stock price instead of focusing on maximizing their bottom line? Yes I’m also looking at you $TSLA
Wait till options open up!!! Puts all day.
Is Michael Avenatti on the board at Lyft now?
Shouldn’t $LYFT rather sue $MS for pricing the IPO way too high? $MS is such a trusted institution, cannot think of how they would try to torpedo the many small mom & pop investors ;-)
wow lyft is looking for ways to justify its unicorn valuation. maybe try more Jim Cramer pumps. you guys are gross.
Lyft is a donut
I'm not sure they understand what it means to be a publicly traded company. But then again, elonmusk is still learning the ropes.
Hum! Imagine that!!
Get in line.
elonmusk One week or short selling? Try several years worth and then get back to me he says
excuse my ignorance but what is a short sale?
😂
Is this their path to profitability strategy?
Character limits restrict me from explaining all the many levels of this stupidity. Sign of weak management with this move imo
Rock solid financial performance by LYFT far better option.
😂 funnie. Watch the shorts in the next few weeks. I saw them being interviewed and thought they were way out of there norm When u announce two days before going public that u will never make money well u invited the circus in.
The insiders are shorting stock they can’t legally sell - figuring this out isn’t exactly rocket science
LOL
These guy had a talk with elonmusk short $tsla Still
ReformedBroker jimcramer 247WallSt jpmorgan Haha! A company that loses $43.04 dollars per share is suing Short Sellers? 🤣
They’re going to love earnings and those pesky analysts questions on the conference calls. 😅
and they’ve sealed their doom...
The rest of the retail investing world should threaten litigation too, accusing the firm of supporting over-valuation. 🤔 Please......
Just wait until they’re on the OTC. Shouldn’t be long
JTSEO9 ROFLMFAO only 1 week public...
It's not in my budget to afford a data plan on top of excessive fees from comcast so I have no data plan! Our healthcare fee would be $21,600 for peachcare in 2019! $150 for Urgent Care Fee, plus medication fees! Our city has parking fees, so we can't even talk to politicians!
Now Pay Pal is raising fees, to increase their profits! Comcast is fee based to increase profits! Last year, my city tried to add a Fire Fee, besides the city taxes we already pay! We pay a Home Association Fee in addition to city/county property taxes
I question the legitimacy of any company who bases profits on fees, where the sellers are not capable of making a profit! I used Etsy before it went public & I went in the hole with packaging & didn't make a profit!
What is the purpose of Angel Investing in a company, so the investors get a stock for $25, it IPOs at $70, the stock runs up, then the investors sell out, run the stock down, make money on a fee based company, which is speculative on APP FEES, & share holders lose?
How come the websites & app companies don't have to go get a loan from a bank, like citizens in the USA are required to get a loan from a bank?
It's OK, to advertise bad sentiment about a stock on TV for advertising, which makes the stock go down, but CEOs are not supposed to be transparent about negative information about their own company, which would make information transparent, & the stock goes down?
When the next recession hits it will be worth nothing. Does not make money.
Lol
Every time anything is mentioned on TV, negative sentiment, the stocks sell off! Someone has insider information, when an advertisement is going to air on TV! Some people have Active Trader Pro, some people don't!
great chance to buyback stocks at a cheaper price lyft
But this has always been the $lyft MO... Deny internal problems exists/blame someone else. No more road show puffery! The growing pains of being accountable/transparent is a bitch when youre a public co especially when people start to learn what a train wreck you've always been.
Ahaha
once it's actually priced properly, no one will short this POS penny stock. $LYFT.
Scary they listed without knowing the basic difference between ECM & an equity trading/ prime brokerage desk.
Hahaha
Comments below are testament to the fact that no one reads the actual story. Lyft is complaining that MS allows PRE IPO investors to effectively sell out by shorting a MS created product. That is highly unethical, if not illegal.
I use Lyft all the time but I'm pretty sure this gambit is not going to end with good publicity for Lyft management.
Man, it must be tough knowing that everyone else was the problem with Lyft’s stock performance.
Well, if they think the short sellers are wrong, they can buy as much of their own stock as the like. A short squeeze is always fun... unless Morgan is right.
Does Lyft understand how free markets work?
BagholderQuotes please comment on this LOL
Someone tell them that’s how the Wall St casino rolls - go back PVT if u can’t take the heat
How dare people short $LYFT , a company that never should have IPOed to begin with and loses 900 million per year. Literally no chance of ever turning a profit. People should be arrested.
Well that didn’t take long.
lmaooo, short this more. the cow is bleating
Short selling should be banned.
lol, here we go again. It’s going to get worse for you guys, cannot wait unit next earring release.
Already Good luck with that. These 2 said they hadn’t thought about the end of the lock up period 😳 maybe the stock shoulda doubled by now 🤷🏼♀️🤣
It’s true a lot of these companies do it.
Thanks to Trump to Wilbur Ross (aka the tariff man)
Alternate headline: 'Investment Bank whose job it is to make money on both sides of a trade, sells swap to do just that during Lyft IPO'
Why don’t companies ever threaten when sell side drives their stock higher
Public a week and $LYFT already complaining about shorts ...wait till earnings announcement comes around ...what then ?
FYI ..Morgan can’t turn over client information...it’s called privacy policy
Who’s going to tell them that short selling is legal?
After a week of trading and already threatening legal action against the shorts. Good luck....
Lol. Too funny
IPOs or any public offering goes up and down like a yoyo. The short selling is part of the game. Greed indeed is a social cancer
Hahahaha
These overrated firms MorganStanley and lyft deserve each other.
🤣🤣🤣a bank committing fraud? Never...🤣🤣🤣
How about they focus on a solution (improve the business) rather than attack a symptom? Or maybe all they care about is having an inflated valuation when lockup expires. Best way to ward off short selling is to run an effective business. Imagine that!
I thought that’s normal IPO stuff.
mr_jettlife hasn’t even been a week