Lyft’s stock drops after agreeing to pay $10 million civil penalty to settle SEC charge

Shares of Lyft Inc.
LYFT,
-3.10%
dropped 3.0% in morning trading Monday, after the U.S. Securities and Exchange Commission said it charged the ride-share company for failing to disclose a board member’s rose in the a shareholder’s sale of about $424 million worth of stock before the company went public. Lyft agreed to pay a $10 million civil penalty and agreed to a cease-and-desist order, without admitting or denying the SEC’s findings. The SEC’s order said before Lyft’s initial public offering in March 2019, a board member brokered a deal for the sale of shares by a shareholder, that Lyft was a participant in the deal as it approved the transaction and that the board member received millions of dollars in compensation for his role in the deal. Lyft’s stock has gained 6.7% over the past three months, while shares of rival Uber Technologies Inc.
UBER,
-1.23%
have advanced 8.1% and the S&P 500
SPX,
+0.09%
has tacked on 0.85.