United States

Lyft threatens Morgan Stanley with legal action over IPO claims

Morgan Stanley is trying to distance itself from its role in helping early Lyft investors bet against the ride-hailing company after Lyft threatened to sue them and report them to regulators, The Post has learned. On Monday, The Post reported that Morgan Stanley, the lead underwriter for Uber’s upcoming IPO, had been helping Lyft’s pre-IPO investors protect against a decline in the stock — despite “lock-up” agreements intended to block those investors from betting against the company in the wake of its public stock offering. Three sources — including an insider at Morgan Stanley and a pre-IPO investor who hedged through the bank — confirmed that Morgan Stanley was involved in the bets. On Thursday — three days after T ...