{"id":85929,"date":"2023-09-19T00:14:42","date_gmt":"2023-09-19T04:14:42","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=85929"},"modified":"2023-09-18T23:31:20","modified_gmt":"2023-09-19T03:31:20","slug":"lyft-hit-with-10m-penalty-for-failing-to-disclose-board-members-financial-interest-in-private-shareholders-stock-transaction","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2023\/lyft-hit-with-10m-penalty-for-failing-to-disclose-board-members-financial-interest-in-private-shareholders-stock-transaction.html","title":{"rendered":"Lyft Hit with $10m Penalty For Failing to Disclose Board Member\u2019s Financial Interest in Private Shareholder\u2019s Stock Transaction"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has charged <strong>Lyft Inc. <\/strong>for failing to disclose a company board director\u2019s role in a shareholder\u2019s sale of approximately <strong>$424 million<\/strong> worth of private shares of Lyft\u2019s stock prior to the company\u2019s initial public offering (IPO).<\/p>\n\n\n\n<p>According to the SEC\u2019s order, prior to Lyft\u2019s IPO in March 2019, a Lyft board director arranged for a shareholder to sell its shares to a special purpose vehicle (\u201cSPV\u201d) set up by an investment adviser affiliated with the same director.&nbsp;The director then contacted an investor interested in purchasing the shares through the SPV. According to the SEC\u2019s order, Lyft, which approved the sale and secured a number of terms in the contract, was a participant in the transaction, and the director was a related person by virtue of his position and because he received millions of dollars in compensation from the investment adviser for his role in structuring and negotiating the deal.&nbsp;Lyft failed to disclose this information regarding the sale in its Form 10-K for 2019. The SEC\u2019s order finds that the director left the Board at the time of the transaction.&nbsp;<\/p>\n\n\n\n<p><em><strong>\u201cThe federal securities laws required Lyft to disclose that a director profited from a transaction in which Lyft itself was a participant,\u201d said Sheldon L. Pollock, Associate Regional Director of the SEC\u2019s New York Regional Office.&nbsp;\u201cWe remain vigilant in ensuring investors are not deprived of critical information about transactions occurring close to a company\u2019s initial public offering.\u201d&nbsp;<\/strong><\/em><\/p>\n\n\n\n<p>The SEC\u2019s order finds that Lyft violated Section 13(a) of the Exchange Act and Rule 13a-1 thereunder. Without admitting or denying the SEC\u2019s findings, Lyft agreed to a cease-and-desist order and to pay a <strong>$10 million civil penalty.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>(HedgeCo.Net) <\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has charged Lyft Inc. for failing to disclose a company board director\u2019s role in a shareholder\u2019s sale of approximately $424 million worth of private shares of Lyft\u2019s stock prior to the company\u2019s initial public [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-85929","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=85929"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85929\/revisions"}],"predecessor-version":[{"id":85931,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85929\/revisions\/85931"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=85929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=85929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=85929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}