NEW YORK, Aug. 7, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed against On Deck Capital, Inc. ("On Deck" or the "Company") (NYSE:ONDK), certain of its officers, and the underwriters of the Company's December 16, 2014 initial public offering (the "IPO"), in the United States District Court for the Southern District of New York on behalf of a class of persons who purchased or otherwise acquired On Deck securities pursuant and/or traceable to On Deck's IPO. The class action alleges violations of the federal securities laws under the Securities Act of 1933 (the "1933 Act").
If you purchased On Deck securities during the Class Period, you may, no later than October 5, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the On Deck Shareholder Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com.
The Complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose material information in the Company's registration statement issued in connection with the IPO relating to the true rate of default for and the true value of the Company's loan portfolio, specifically that the loan portfolio default rate was steadily increasing and the loan portfolio value was in material decline.
The Company raised approximately $230 million in the IPO pursuant to the issuance of 11,500,000 shares at an offering price of $20 per share. After reports of increasing default rates in its loan portfolios and the declining value of its business model, On Deck common stock dropped to a low of $11.15 per share on July 1, 2015, only approximately six months after the IPO. The drop represents a decline of 44% from the IPO price and of over 60% from its almost $29 per share high on December 18, 2014. The Company's stock price has declined further closing at $10.47 on August 4, 2015.
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