STEVENSON, Md., May 18, 2016 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of LendingClub Corporation (NYSE:LC) (LendingClub or the “Company”) securities: (1) pursuant and/or traceable to LendingClub’s false and misleading 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 (2) on the open market between December 11, 2014 and May 6, 2016, both dates inclusive (the “Class Period”). Investors with losses in excess of $100,000 who wish to become proactively involved in the litigation have until July 15, 2016 to seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in LendingClub securities during the Class Period. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 and the Securities Act of 1933 by virtue of the defendants’ failure to disclose in connection with the Company’s IPO and throughout the Class Period that LendingClub’s internal controls were inadequate to ensure that the Company’s loans conformed to its customers’ criteria and that relevant interests in third-party transactions were fully and timely disclosed.
According to the complaint, following the May 9, 2016 disclosure that the Company’s board of directors (the “Board”) had accepted the resignation of the Company’s Chairman and Chief Executive Officer, which 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 in violation of the investor’s “express instructions” and 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, and the May 10, 2016 articles reporting that the U.S. Securities and Exchange Commission was investigating the Company’s disclosures and that Goldman Sachs and Jefferies LLC had halted their purchases of LendingClub loans, the value of LendingClub shares declined significantly.
If you have suffered a loss from investment in LendingClub securities purchased on or after December 11, 2014 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.