Lyft Misled Public Before IPO, Federal Securities Suit Claims

Lyft Inc. has been hit with a shareholder lawsuit accusing the ride-hailing giant of misleading investors about its performance and prospects before its initial public offering in March.

Lyft earned $2.34 billion when it went public March 28 at $72 a share. But the share price has plummeted by more than 25% since then amid disappointing reports about its market share, potential labor problems, and a safety recall involving Motivate, a recent bike-sharing acquisition.

The company knew about those problems before the IPO but kept investors in the dark to boost its debut price, the suit says. It says Lyft ...