Lyft (LYFT.US) wins shareholder lawsuit caused by wrong earnings release.

A federal judge has dismissed a shareholder lawsuit against Lyft (LYFT.US) accusing the company of taking too long to correct errors in financial disclosures, deceiving shareholders. The lawsuit was brought by investors who purchased Lyft stock at allegedly inflated prices between 4:05 pm and 4:51 pm Eastern Time on February 13, 2024, marking the time between the company's initial earnings release and the official correction during an earnings call. Specifically, Lyft had projected a 500 basis point increase in one of its profit margins for 2024, but actually only expected a 50 basis point increase. The unexpected profit margin guidance led to a short-term surge in Lyft's stock price, attracting unknowing buyers at inflated prices. Judge Trina Thompson of the U.S. District Court in San Francisco ruled that the shareholders involved in the proposed class-action lawsuit did not prove that the company and its executives intentionally deceived anyone by reporting incorrect profit margins, and that it was not unreasonable for Lyft to need additional time to correct data disclosures. As of the time of writing, Lyft's stock price was up 0.96% in pre-market trading on Friday.