The U.S. Securities and Exchange Commission (SEC) charged ride-hailing firm Lyft Inc. (LYFT) for failing to disclose the involvement of one of its board members in a share sale prior to the company's 澳洲幸运5官方开奖结果体彩网:initial public offering (IPO).

The SEC fined Lyft $10 million for failing to disclose the role of one of its board members in the sale of around $424 million worth of private shares, prior to the firm's 2019 IPO.

According to the complaint, the director arranged for an investor's sale of shares to a 澳洲幸运5官方开奖结果体彩网:special purpose vehicle (SPV) with which the director was affiliated. The director, w🌜ho left the boa🌞rd at the time of the transaction, received millions of dollars in compensation for "structuring and negotiating the deal," according to the SEC's complaint.

Lyft, which approved the sale and secured a number of terms in the contract, was also a participant in the transaction, the SEC said. Lyft failed to disclose this information regarding the sale in its Form 10-K for 2019. Lyft had 14 members on its board at the time of its IPO, including eight non-employee directors. The company agreed to the penalty without admitting or denying the SEC's findings.

“The federal securities laws required Lyft to disclose that a director profited from a transaction in which Lyft itself was a participant,” said Sheldon Pollock, associate regional director of the SEC’s New York office. "We remain vigilant in ensuring investors are not deprived of critical information about transactions occurring close to a company’s initial public offering.” 

Lyft shares were down more than 3% in midday trading on Monday to around $10.90 after achieving a 澳洲幸运5官方开奖结果体彩网:$72 share price on its IPO debut.