Lyft

Lyft Fined $10 Million Over Icahn-Soros Deal

Lyft Inc. has agreed to a $10 million fine to settle allegations from the U.S. Securities and Exchange Commission (SEC) that it failed to disclose a board director’s role in a high-profile share sale. The director in question reportedly helped billionaire investor Carl Icahn sell his stake in Lyft to fellow billionaire George Soros just before the ride-sharing company’s initial public offering (IPO) in 2019.

The SEC revealed that a Lyft director orchestrated the sale of a 2.6% stake in the company right before its IPO. Though the SEC did not name the individuals involved, sources with direct knowledge identified the director as Jonathan Christodoro. Christodoro had arranged the sale of $424 million worth of Lyft shares from Icahn to Soros, at a discount to the expected IPO price.

The main point of contention here is that Lyft failed to adequately disclose Christodoro’s financial interest in the sale. The director allegedly received both management and performance fees for facilitating the deal. According to securities filings, Christodoro resigned from Lyft’s board around the time of the transaction in March 2019.