Lyft to pay $10M penalty for failing to disclose board director's involvement in share sale before IPO

Ride-hailing company Lyft has agreed to pay a $10 million penalty to settle claims made by the US Securities and Exchange Commission (SEC) that it failed to disclose a board director's involvement in a share sale before its initial public offering (IPO) in 2019. The SEC alleged that Lyft did not disclose the sale of approximately 7.7 million shares, worth about $424 million, in a regulatory filing. The board director was reportedly paid millions of dollars to facilitate the sale. The settlement comes as Lyft prepares to go public through an IPO.

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