Ride-hailing firm Ryde faces shareholder petition and class action lawsuit

Singapore-based ride-hailing company Ryde is facing two separate legal challenges. A class action lawsuit has been filed in the U.S. accusing the publicly traded firm of involvement in a "pump-and-dump" scheme. This type of scheme involves fraudsters artificially inflating the price of a security through misleading statements, then selling their holdings at the peak.

The class action was lodged in the Southern District of New York on September 10. Separately, on July 3, shareholder Octava Fund submitted a petition to the Grand Court of the Cayman Islands. Octava is seeking a buyout of Ryde's 6.9 million shares or the company's liquidation, citing issues such as improper governance and breach of duty.

Ryde responded to the legal actions in a September 18 statement. Regarding the shareholder petition, the company stated the proceedings are in their early stages with no court findings yet, and that directors remain in control without operational impact. For the class action lawsuit, Ryde indicated its intention to retain litigation counsel and defend itself vigorously.

Founded in 2014 as a carpooling app, Ryde expanded into ride-hailing and delivery services and went public in March 2024. The class action, filed on behalf of investors who purchased Ryde securities between March 6 and September 11, 2024, alleges the company facilitated a scheme to defraud investors, including by using individuals claiming to be financial advisors to create a buying frenzy.