Defendant Name:
Lyft, Inc.
Defendant Type:
Public Company
SIC Code:
9999
CUSIP:
55087P10
Document Reference:
34-98413
Document Details
Legal Case Name
In the Matter of Lyft, Inc.
Document Name
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
Document Date
18-Sep-2023
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Monetary Penalties:
Civil Penalty
Individual:
$10,000,000.00
Shared:
