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Lyft sued Morgan Stanley over concerns over short selling



Lyft has accused Morgan Stanley of supporting short-selling moves among investors prior to the company's historic IPO last month, CNBC said.

The Company requested replies from Morgan Stanley on April 2, signed by Lyft's solicitor Peter Stris, in which the company was interviewed about possible activities that supported investors who are contractually barred and betting on the company's stock.

A lock-up agreement is a legally binding contract signed by IPO underwriters and persons close to the company, including senior executives and employees, selling shares for a specified period of time , usually before the debut of a stock, prohibited.

CNBC also pointed out that the letter was in response to a report from the New York Post, which cited three sources, according to which Morgan Stanley advocates hedging activities related to Lyft, although the company stated in a statement that it flatly denies such activities.

A spokesman for Morgan Stanley also denied these reports to CNBC, saying that the company "has not made or has executed, directly or indirectly, any sale or sale, short-selling, hedging, swap or transfer of any risk or asset associated with Lyft Shares Lyft Shareholder identified by the Company or otherwise known to us as the subject of a Lyft-Lock-Up Agreement. "

Read more : Betting against Lyft is" the amateur short, "says Citron Research

The confrontation comes to Lyke just over a week after Lyste's Nasdaq debut, rising to over $ 29 billion on Day One. It was the first company to have participated in the stock exchange history.

The IPO was just the beginning of more than 1

00 tech unions or startups worth $ 1 billion or more that went public in 2019, including the Uber of Pinterest, Airbnb, and Lyft's Ride-Share App.


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