(Bloomberg) -- Lyft Inc. agreed to pay a $10 million penalty to settle US Securities and Exchange Commission claims that it failed to disclose a board director’s involvement in a share sale before the company’s initial public offering in 2019.
The person, who resigned from the company at the time of the transaction in March 2019, arranged for a Lyft investor to sell $424 million worth of private shares before the company’s IPO, the SEC said on Monday.
The regulator said that the firm, which didn’t admit or deny the allegations in settling the case, failed to properly disclose the transaction. The ex-director wasn’t identified by the SEC. A representative for Lyft didn’t immediately respond to a request for comment.
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