Form 4: CS Disco CFO's Stock Transaction for Tax Obligations

CS Disco's EVP and CFO, Michael Lafair, had 1,639 shares withheld by the company to cover tax liabilities upon the vesting of a restricted stock award.

Summary

• Michael Lafair, Executive Vice President and Chief Financial Officer of CS Disco, Inc. (LAW), reported a transaction on September 30, 2025.
• The transaction involved the disposition of 1,639 shares of Common Stock at a price of $6.46 per share.
• These shares were withheld by the Issuer to cover the tax liability associated with the vesting of a time-based restricted stock award.
• This disposition does not represent a discretionary sale by Mr. Lafair.
• Following this transaction, Mr. Lafair beneficially owns 819,445 shares of Common Stock directly.

Sentiment

Score: 5

Explanation: The transaction is administrative, related to tax withholding upon the vesting of a restricted stock award, and does not indicate a discretionary sale or significant change in company fundamentals. Therefore, the sentiment is neutral.

Positives

• The underlying event is the vesting of a time-based restricted stock award, which represents earned compensation for the EVP and CFO.

Negatives

• The transaction resulted in a reduction of 1,639 shares from the EVP and CFO's direct beneficial ownership, even though it was for tax purposes.

Risks

• No specific company-wide risks or future challenges were mentioned in this filing.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• These shares were withheld by the Issuer to cover the tax liability upon the vesting of a time-based restricted stock award previously granted, and does not represent a discretionary sale by the reporting person.

Industry Context

This is a routine insider transaction related to executive compensation and tax obligations, common across publicly traded companies when restricted stock awards vest. It does not reflect broader industry trends or competitive positioning.

Comparison to Industry Standards

• The practice of withholding shares to cover tax liabilities upon the vesting of restricted stock awards is a standard and common procedure for executive compensation in the U.S. public markets, aligning with typical industry practices for managing equity compensation.

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine, non-discretionary transaction for tax purposes related to executive compensation.
• Employees: No direct impact on the broader employee base.

Next Steps

• No specific future actions, events, or milestones for the company were mentioned in this filing.

Key Dates

Keywords

CS Disco, LAW, Form 4, Insider Transaction, Michael Lafair, CFO, Restricted Stock Award, Tax Withholding, Beneficial Ownership