September 18, 2023

Lyft Inc. will pay a $10 million civil penalty for its failure to disclose a board director’s role in the sale of $424 million worth of private shares prior to Lyft’s initial public offering. The director arranged for a shareholder to sell their shares to a special purpose vehicle, and then arranged for another investor to purchase the shares through the SPV. Lyft failed to disclose this information in its 2019 Form 10-K, depriving investors of critical information. SEC

Tagged in: Regulatory Violations, Securities Fraud,