SEC Charges Lyft Regarding Disclosure of Director’s Role in Deal

SEC charges Lyft for failing to disclose a board director’s role in a shareholder’s sale of about $424 million worth of private shares prior to IPO.

• SEC says company failed to disclose this information regarding the sale in its Form 10-K for 2019
• SEC finds the board director arranged for a shareholder to sell its shares to a special purpose vehicle set up by an investment adviser affiliated with the same director, and Lyft, which approved the sale and secured a number of terms in the contract, was a participant in the transaction
• Lyft agreed to a cease-and-desist order and ...