NEW YORK, May 13, 2016 /PRNewswire/ -- Wolf Popper LLP is investigating potential securities fraud claims on behalf of investors in LendingClub Corporation (NYSE: LC), resulting from the resignations of its CEO and three other senior managers after an internal review found "improper practices in the lending process" concerning the improper sale of $22 million in near-prime loans to an investor. LendingClub investors can contact Fei-Lu Qian at 877.370.7703 or firstname.lastname@example.org for more information.
On May 9, 2016, in conjunction with the release of LendingClub's first quarter 2016 financials, the Company disclosed that based on the internal review, the sale of $22 million in near-prime loans "failed to conform to the investor's express instructions as to a non-credit and non-pricing element." The Company also revealed that certain insiders held personal investment interests "in a third party fund while the Company was contemplating an investment in the same fund."
Later in the day, The Wall Street Journal ("WSJ") published an article revealing that documents were falsified to meet the investor's instructions as "some people at the company knew the loans didn't meet the investor's criteria."
On this disclosure, LendingClub common stock plummeted $2.48 per share or nearly 35%, to close at $4.62 per share on May 9, 2016.
On May 11, 2016, after the market closed, the WSJ reported that LendingClub's CEO and a Director were the insiders who "invested millions of dollars in an outside fund" to allow the fund "to buy more Lending Club loans." According to the WSJ, LendingClub has opened the door to "potential conflicts of interest and accusations that it is favoring one client over others."
On this disclosure, LendingClub common stock fell an additional $0.32 per share or 8%, to close at $3.76 per share on May 12, 2016.
Wolf Popper LLP has extensive experience representing shareholders in securities class actions and has successfully recovered billions of dollars for defrauded investors. The reputation and expertise of the firm in representing shareholders has been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. See www.wolfpopper.com
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SOURCE Wolf Popper LLP