It is reported that Lyft has threatened to sue Morgan Stanley in a letter sent to the investment bank on Tuesday, accusing the firm of providing short selling to investors who are subject to blocking deals.
In a letter to Lyft, the firm questioned its alleged role in helping the market with certain products, which will help investors to bid on shares before the IPO, reports CNBC with reference to the letter and unknown sources. The letter was signed by Peter Stris from the Stris and Maher law firm, which is Lyft's lawyer, reports CNBC.
Lyft and Stris & Maher did not respond to requests for comments.
The development follows the New York Post's report on Monday that Morgan Stanley deliberately helps investors protect IPOs from stock declines, despite the so-called "lock" contracts that have The goal is to prevent this. Morgan Stanley is the leader of the underwriter for the future of IPO Uber ̵
The notice also stated that the blocking agreements were written in such a way that it allowed investors Lyft to make limited "short" rates. Short sellers are investors who believe that Lyft will lose value.
According to CNBC, Morgan Stanley did not formally respond to this email.
However, in a statement to FOX Business, Morgan Stanley's representative denies the performance, "directly or indirectly, of selling, short selling, hedging, exchanging or transferring the risk or value associated with Lyft shares to any shareholder Lyft, defined in
"The activities of our company were in the process of market competition, and any suggestion that Morgan Stanley has been making efforts to apply" short-term pressure "on Lyft is a false one," said the representative.
Information originally reported a threat of a lawsuit by Lyft.
|LYFT||LYFT INC.||74.45||+ 2.45||+ 3.40%|
estimated at approximately $ 24 billion, debuted at the end of March, initially trading for $ 87.24 per piece – far above $ 72 per share it was estimated . This was one of the most anticipated IPO of the year. Lyft closed at $ 74.45 per share on Friday.
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