Lyft IPO Underwriters Don’t Have to Defend Stock Drop Class Suit

J.P. Morgan Securities, UBS Securities, and Wells Fargo Securities are just a few underwriting firms that won’t have to defend their actions in a major securities suit in California federal court that claims Lyft Inc. misled shareholders ahead of its 2019 initial public offering.

Twenty-eight companies in total were dismissed from the shareholder lawsuit, according to Thursday’s notice of voluntary dismissal filed inthe U.S. District Court for the Northern District of California.

Lyft’s debut share price was $72 when the company went public on March 28, 2019. It plummeted by double digits within months, and the shareholders allege ...