Overview

• A typo in Lyft's earnings report falsely indicated a 500 basis point margin expansion, leading to a 67% surge in stock price.
• Shareholders filed a class action lawsuit, alleging securities fraud and seeking damages for buying shares at inflated prices.
• CEO David Risher admitted the error, attributing it to carelessness and taking personal responsibility.
• The lawsuit claims Lyft executives delayed correcting the mistake to benefit from stock-based performance bonuses.
• Lyft's market value increased by as much as $3.2 billion before losing nearly $2.9 billion of that gain.