Lyft has agreed to pay $10 million to settle Securities and Exchange Commission (SEC) charges it failed to disclose a board member's financial interest in a transaction involving the company, the U.S. regulator said on Monday.
Prior to its public listing in March 2019, a Lyft board director arranged for the sale of $424 million worth of private shares through a special purpose vehicle affiliated with the director, the SEC said in a statement.
Lyft did not disclose this information in its SEC filings for 2019, said the regulators, who did not disclose the director's name.
A Lyft vehicle in San Francisco, California, on May 2, 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Representatives for Lyft, which did not admit or deny the SEC allegations, did not respond immediately to requests for comment.
The SEC said that Lyft was required to report details of the transaction because Lyft, which approved sale of the private sales, was a participant in the deal.
Lyft CEO David Risher discusses the Summer Travel Release at an event on May 11, 2023, in New York. (Jason DeCrow / Lyft)
The director left Lyft's board at the time of the transaction, regulators said.