The U.S Securities and Exchange Commission has fined ride-hailing company Lyft $10 million for failing to disclose the sale of $424 million worth of private shares before its initial public offering.
Before Lyft’s went public in March 2019, a board director arranged for a shareholder to sell its shares to a to a special purpose vehicle set up by an investment adviser affiliated with the same director, the SEC said.
The SEC accuses Lyft of approving the sale and securing a number of terms in the contract.
Lyft agreed to the fine without admitting or denying the SEC’s charge.
