After the flood of IPOs? Next come the shareholder lawsuits
Lyft and Eventbrite are among the crop of newly public companies facing litigation after their IPOs. The risk factors sections for S-1 filings have grown larger in the last 20 years in an attempt to avoid lawsuits. Finance professor Timothy Loughran is quoted in an article for Inc., saying, "Painting a pessimistic picture of what could happen in the future can only help in the event of a lawsuit."
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