Owen Davis reports that Uber has achieved another milestone.
It has gotten itself sued for stock fraud, even thought it has not yet issued any stock. An excerpt:
The plaintiffs, the Irving (Texas) Firemen’s Relief & Retirement Fund, invested $2 million in Uber back in 2016 through a fund operated by Morgan Stanley. Since then, the lawsuit claims, Uber’s private valuation has dropped $18 billion. So they’re suing.
If Uber had recently gone public in a massively overhyped IPO, only to shed double-digits as the true depths of its mediocrity came to light, a lawsuit would not be unusual. Just ask Blue Apron. But it’s rare for a startup to face investor suits in any situation short of complete and utter fabrication on the part of the founders. It basically signals that the highly illiquid startup stake you’ve got – and for which you’d like good money – is worthless.
Read the whole thing. It will give you a lyft.