Lyft accused Morgan Stanley of supporting short-term sales among investors before the company's historic IPO last month, reports CNBC.
The company was looking for responses from Morgan Stanley in a letter dated April 2, signed by the Lyft lawyer, Peter Stris, who questioned the firm about possible activities that supported investors who are subject to a contractual agreement by bidding on shares in the company.
A blocking agreement is a legally binding contract issued by IPO underwriters that prohibits people close to the company, including executives and employees, from selling shares for a certain period of time, usually before the debut of the shares.
CNBC also noted that the letter was a response to the New York Post, which quoted three sources that stated that Morgan Stanley supported the Lyft-related hedging, although the firm had categorically denied any " what kind of activity.
The representative of Morgan Stanley also denied these CNBC reports stating that the firm "does not sell or sell, directly or indirectly, sale, short sale, hedging, exchange or transfer of risk or value associated with shares of Lyft Shareholder Lyft, defined by the company or otherwise known to us, is the subject of an agreement to terminate Lyft.
Read more : Bet against Lyft ̵
Confrontation takes a little more than a week after how Lyft debuted Nasdaq, rising to a mark of just over $ 29 billion in It was the first company to ride-share in history to go public.
The IPO was only the start of more than 100 technological unicorns or $ 1 billion or more startups that could be public in 2019, including Pinterest, Airbnb and rival applications Lyft, Uber.