SAN DIEGO, May 24, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed in California on behalf of certain purchasers of shares of LendingClub Corp (NYSE:LC) over alleged Securities Laws Violations by LendingClub.
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 that the 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 May 9, 2016, LendingClub 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. LendingClub 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), in violation of the investor’s “express instructions.” LendingClub 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 news outlets reported that the SEC was investigating LendingClub’s disclosures.
On May 10, 2016, news outlets reported that Goldman Sachs and Jefferies LLC 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.
Those who purchased LendingClub Corp (NYSE:LC) shares should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.