LendingClub investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, LendingClub, together with its subsidiaries, operates as an online marketplace that connects borrowers and investors in the United States. Its marketplace facilitates various types of loan products for consumers and small businesses, including unsecured personal loans, super prime consumer loans, unsecured education and patient finance loans, and unsecured small business loans.
The complaint alleges that in connection with the IPO and throughout the Class Period, the defendants made materially false and misleading statements regarding the LendingClub’s business, operational and compliance policies. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) LendingClub’s internal controls were inadequate to ensure that LendingClub’s loans conformed to its customers’ criteria; (ii) LendingClub’s internal controls were inadequate to ensure that relevant interests in third-party transactions were fully and timely disclosed; and (iii) as a result of the foregoing, LendingClub’s public statements were materially false and misleading at all relevant times.
On December 11, 2014, LendingClub completed its IPO, selling 58 million shares at $15.00 each and raising $870 million. On its first day of trading, LendingClub’s stock price climbed as high as $25.44 per share, ultimately closing at $23.43 per share, up more than 56% from its IPO price.
According to the complaint, on May 9, 2016, LendingClub disclosed in an SEC filing that on May 6, 2016, the company’s board of directors had accepted the resignation of Defendant Renaud Laplanche (“Laplanche”) as the company’s Chairman and Chief Executive Officer (“CEO”). The company 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.” Following this news, LendingClub’s stock fell $2.48 per share, or nearly 35%, to close at $4.62 per share on May 9, 2016.
Then, on May 10, 2016, Bloomberg and other 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. Following this news, LendingClub stock fell $0.52 per share, or 11.3%, to close at $4.10 per share on May 10, 2016.
If you are a member of the class described above, you may no later than July 15, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com