Defendant Name: Lyft, Inc.

Defendant Type: Public Company

Document Reference: 2023-182

Document Details

Legal Case Name In the Matter of Lyft, Inc.
Document Name SEC Charges Lyft with Failure to Disclose Board Member's Financial Interest in Private Shareholder's Pre-IPO Stock Transaction
Document Date 18-Sep-2023
Document Format Administrative Proceeding
File Number 3-21672
Allegation Type Issuer Reporting and Disclosure
Document Summary 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)."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Monetary Penalties:

Civil Penalty

Individual:     $10,000,000.00 Shared:    

Related Documents:

34-98413 18-Sep-2023 Administrative Proceeding
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
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."