Lyft Says Accounting Error Understated 2021 Net Loss by $52.8m

Lyft says it will restate consolidated financial statements for 2021 due to error relating to the accounting of losses ceded under a reinsurance agreement.

• Under the agreement, DARAG Bermuda reinsured a legacy portfolio of auto insurance policies
• The error resulted in $52.8m understatement for 2021 of cost of revenue, loss from operations, loss before income taxes and net loss
• Lyft says disclosure controls and procedures weren’t effective as of Sept. 30 and Dec. 31, 2021, and its internal control over financial reporting wasn’t effective as of Dec. 31, due to a material weakness in evaluating the impact of the reinsurance ...