Haynes Boone Partner Brad Foster was quoted in Bloomberg Law abd MarketWatch articles regarding Lyft management issuing a correction to their forecast, saying that increase was, in fact, smaller than what it said the first time around and leading to shares ballooning in value after hours.
“Lyft clearly did one thing right – it corrected the error quickly and decisively,” Foster told Bloomberg Law. “The reality is that people make mistakes, and mistakes are not securities fraud.”
“Stock drop lawsuits typically require proof of ‘scienter” or ‘intent to defraud,’” Foster told MarketWatch. “A typographical error, quickly corrected by the company, does not meet this standard.”
To read the full article in Bloomberg Law, click here.
To read the full article in MarketWatch, click here.
