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Lyft is threatened by Morgan Stanley's lawsuit against IPO claims



Morgan Stanley tries to distance itself from its role in helping early investors of Lyft against the arriving company after Lyft threatened to sue them and notify them to the regulators, reports The Post.

reported that Morgan Stanley, a leading underwriter for Uber's upcoming IPO, helps Lyft investors set up protection against stock collapse, despite "blocking" deals aimed at blocking these investors against the company.

Three sources – in including an insider at Morgan Stanley and an investor before the IPO, which hedged through the bank – confirmed that Morgan Stanley was involved in the rates.

On Thursday – three days after publication, Morgan Stanley asked that the story be updated to include a statement in which the bank participated in the hedging associated with Lyft.

"Morgan Stanley did not sell, or did not pay, the total amount of" Avern "or" hedging "products, or any short product at Lyft shares", ̵

1; the statement said. "We did not execute, directly or indirectly, short sales for those identified by the company or otherwise known to us as being part of the Lyft Blocking Agreement."

But sources, including the investor before the IPO, hedging through Morgan, continue to insist on hedging.

"We bought shares in a special vehicle, and then individual investors in a special vehicle bought shares through Morgan Stanley," says the investor before the IPO. "Morgan Stanley predicted that most of the borrowings are shrinking."

Now it became clear that Morgan Stanley's objection arises after Lift has been subjected to strict correspondence with the question of whether Morgan Stanley intervened in a "distorted interference" according to

The Lyft Letter, which was first reported to The Information, also threatened with legal action and warned of potential regulatory consequences.

The Financial Industry Regulatory Authority began collecting information about the Lyft Trade Company, a source with a direct knowledge of the situation, The Post said.

Meanwhile, Morgan was still bidding, known as a general exchange of returns, on the evening of the evening, one Wall Street manager said the operation was reported by The Post. 19659002] "This is relatively unethical, and this is not normal," said the person, adding that this is also not illegal.

Lyft was one of the hottest Stocks of overcrowded IPOs, up 21% immediately after their debut at Nasdaq on March 29th – before appetite for a short supply increased.

"These are Uber's dirty tricks that are used," said a source familiar with the elevator's thinking. Post, noting that Morgan Stanley is a leading underwriter of IPO Uber.

The shares resumed their position, closing at $ 74.45.

Pre-IPO investors are contractually forbidden to cut their "economic interests" on Lyft for six months, which includes locking stocks. But sources argue that Lyft investors worked around the language of closure by placing rates in such a way that they would not benefit from lowering or increasing stocks. Instead, they simply block their IPOs, which were significant.

Representatives of Lyft refused to comment. Morgan Stanley declined further comment.


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