On September 18, 2023, the SEC instituted settled cease-and-desist proceedings against Lyft, stating: "These proceedings arise out of Lyft's failure to disclose a related person transaction involving a large shareholder's ("Shareholder") sale of its approximately 7.7 million shares, amounting to roughly 2.6% of the Company, that occurred in the weeks prior to Lyft's initial public offering ("IPO"). A Lyft director placed on the board by Shareholder ("Director") contacted an investor ("Investor") who was interested in purchasing the shares. Director arranged the sale of the shares to a special purpose vehicle ("SPV") set up by an investment adviser ("Investment Adviser") with which Director was affiliated; Investor acquired the shares by becoming a limited partner in the SPV. Lyft, which approved the sale and secured a number of terms in the contract, was a participant in the transaction. Director received millions of dollars in compensation from Investment Adviser for his role in structuring and negotiating the deal."

On September 18, 2023, the SEC stated that: "[It] charged Lyft Inc. for failing to disclose a company board director’s role in a shareholder’s sale of approximately $424 million worth of private shares of Lyft’s stock prior to the company’s initial public offering (IPO)."