Lyft to pay $10M civil penalty over disclosure failures: SEC
Lyft board director arranged for sale of $424M worth of private shares through a special purpose vehicle affiliated with the director
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Lyft incoming CEO David Risher discusses the changes he will make to turn the company's stock around on 'The Claman Countdown.'
Lyft has agreed to pay $10 million to settle Securities and Exchange Commission (SEC) charges it failed to disclose a board member's financial interest in a transaction involving the company, the U.S. regulator said on Monday.
Prior to its public listing in March 2019, a Lyft board director arranged for the sale of $424 million worth of private shares through a special purpose vehicle affiliated with the director, the SEC said in a statement.
COMPANIES USE LYFT PROGRAM AS PUBLIC TRANSIT ALTERNATIVE FOR EMPLOYEES RETURNING TO OFFICE
Lyft did not disclose this information in its SEC filings for 2019, said the regulators, who did not disclose the director's name.
A Lyft vehicle in San Francisco, California, on May 2, 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Representatives for Lyft, which did not admit or deny the SEC allegations, did not respond immediately to requests for comment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 15.64 | -0.66 | -4.05% |
| UBER | UBER TECHNOLOGIES INC. | 66.27 | -1.13 | -1.68% |
The SEC said that Lyft was required to report details of the transaction because Lyft, which approved sale of the private sales, was a participant in the deal.
Lyft CEO David Risher discusses the Summer Travel Release at an event on May 11, 2023, in New York. (Jason DeCrow / Lyft)
The director left Lyft's board at the time of the transaction, regulators said.
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