Lyft is facing a class-action lawsuit from investors who allege the ride-hailing business overstated its market position during its initial public offering.
Investors said they're owed money after buying a stake in the company, which saw its shares fall by $9.02 earlier in May.
Rosen Law Firm said on Friday that investors are also arguing that Lyft's public statements were false and misleading because more than 1,000 of its ride-share bicycles had safety issues leading to their recall, and because of allegations that Lyft's drivers became "disincentivized from driving for Lyft." Lyft filed for its IPO in March, with shares initially offered at $72 and closing at $78.29 at the end of their first day of trading.
Rival company Uber has also seen its stock fall after debuting on the market last week.
Lyft was sued by investors last month as well, as its stock price fell. As of publication, Lyft shares were worth $53.79.
For the quarter ending March 31, Lyft reported revenue of $776 million, higher than the $739.48 million forecast by analysts, and it's predicting between $800 million and $810 million in revenue for the quarter ending in June. Lyft also reported that its number of active riders grew from 14 million a year ago to 20.5 million now.
Lyft didn't immediately respond to a request for comment.