Investors Ask Lyft to Scrap Two-Share Plan Ahead of IPO: FT

A group of pension funds, unions and asset managers in the U.S., the U.K. and Europe has called on Lyft Inc.’s board to remove a proposed dual-class share structure ahead of an IPO pitch to investors, the Financial Times reported on Saturday, citing a letter sent to directors last week.

Lyft should stick with its single class of shares with one vote each when it debuts on the Nasdaq exchange as a switch to a dual-class structure imposes unnecessary risk to potential shareholders, according to the letter. If Lyft’s board fails to address the issue, it should adopt a provision to phase out the extra voting rights in seven years, it said.