An investor in NYSE:LC shares filed a lawsuit against LendingClub Corp over alleged Securities Laws violations in connection with certain allegedly false and misleading statements.
Investors who purchased shares of LendingClub Corp (NYSE:LC) have certain options and for certain investors are short and strict deadlines running. Deadline: July 15, 2016. NYSE:LC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges on behalf of purchasers of LendingClub Corp (NYSE:LC) securities pursuant and/or traceable to LendingClub’s Registration Statement and Prospectus issued in connection with the Company’s initial public offering on or about December 11, 2014 (the “IPO” or the “Offering”) and/or on behalf of purchasers of LendingClub Corp (NYSE:LC) securities on the open market between December 11, 2014 and May 6, 2016, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between December 11, 2014 and May 6, 2016 Defendants made false and/or misleading statements and/or failed to disclose that LendingClub’s internal controls were inadequate to ensure that LendingClub’s loans conformed to its customers’ criteria, that LendingClub’s internal controls were inadequate to ensure that relevant interests in third-party transactions were fully and timely disclosed, and that as a result of the foregoing, LendingClub’s public statements were materially false and misleading at all relevant times.
On December 11, 2015, it was reported that “the California Department of Business Oversight, which oversees securities and lending activity in that state, sent requests to 14 companies for details about their lending practices, investors and business models.” It was then reported that on December 14 a spokesman for the Department of Business Oversight, sent out an email naming LendingClub as one of the 14 companies.
On May 9, 2016, LendingClub Corp disclosed that on May 6, 2016, the Company’s Board of Directors had accepted the resignation of Renaud Laplanche as the Company’s Chairman and Chief Executive Officer (“CEO”). LendingClub Corp reported that Renaud Laplanche’s resignation was precipitated by an internal review that found that the Company had sold $22 million in loans, made to consumers with low credit scores, to a single investor (later reported to be Jefferies LLC (“Jefferies”)), in violation of the investor’s “express instructions.”
LendingClub Corp also disclosed “a failure to inform the board’s Risk Committee of personal interests held in a third party fund while the Company was contemplating an investment in the same fund.”
It was subsequently reported that Renaud Laplanche had failed to fully disclose a personal interest he held in Cirrix Capital while the Company was contemplating investing in the fund—an investment that Renaud Laplanche had himself proposed to LendingClub’s risk-management committee—and that LendingClub Board Member John Mack also held an undisclosed interest in Cirrix Capital.
On May 9, 2016, post-market, news outlets reported that the SEC was investigating LendingClub’s disclosures.
On May 10, 2016, news outlets reported that Goldman Sachs and Jefferies had halted their purchases of LendingClub loans. That same day, the U.S. Treasury Department issued a White Paper describing the online lending industry as “untested” and calling for more regulation.
Shares of LendingClub Corp (NYSE:LC) declined on May 17, 2016, to as low as $3.44 per share.
Those who purchased NYSE:LC shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com