NEW YORK, Aug. 5, 2015 /PRNewswire/ -- Tripp Levy PLLC, a leading national securities law firm, announces that a class action lawsuit has been filed against On Deck Capital, Inc. ("On Deck" or the "Company") (NYSE: ONDK) and certain of its officers. The class action, filed in United States District Court Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired On Deck securities pursuant and/or traceable to On Deck's Registration Statement and Prospectus issued in connection with the Company's December 16, 2014 initial public offering ("IPO").
The Complaint alleges that defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the true rate of default for the Company's loan portfolio was steadily increasing; (2) the true value of the Company's loan portfolio was in material decline; and (3) as a result of the foregoing, On Deck's public statements were materially false and misleading at all relevant times.
On December 15, 2014, On Deck filed its amended Registration Statement for the IPO, which became effective on December 17, 2014. On February 11, 2015, less than two months after the IPO, SeekingAlpha.com published an article entitled "On-Deck Capital: Bad Loans, Bad Interest Rates, Bad Business Plan." The article described, in part, how the Company's Registration Statement significantly understated the default rate for the Company's loan portfolio.
On March 18, 2015, Compass Point Research & Trading, LLC ("Compass Point") published a research report (the "Compass Point Report") that detailed concerns with On Deck's business model, including inherent risks surrounding an untested credit model, growing competition, uncertainty with regard to interest rates, and anticipated regulatory threats, all of which created a risky environment for On Deck investors. On Deck's unsustainable business model, according to the Compass Point Report, could ultimately lead to slower growth and higher expenses.
On July 1, 2015, barely six months after the IPO, On Deck common stock dropped to a low of $11.15 per share, a decline of over 40% from the IPO price and of over 60% from its almost $29 per share high on December 18, 2014. The significant drop in share price came after news reports of rising default rates in On Deck's loan portfolios and declining value of its business model. The Company is now reportedly losing tens of millions of dollars through defaults on its loans, likely due to the company's reliance on stated income and data from third-party sources, which may contain inaccuracies.
If you purchased shares of On Deck pursuant and/or traceable to On Deck's Registration Statement and Prospectus issued in connection with the Company's December 16, 2014 initial public offering and have suffered a loss from your investment in On Deck common stock and would like to learn more about this lawsuit, including your ability to potentially recover your losses, please contact us either by email at email@example.com or by telephone at (800) 511-7037 or visit our website at www.tripplevy.com. In addition, if you wish to serve as lead plaintiff, you must move the Court no later October 3, 2015. You can join this class action to potentially recover your losses by contacting us at www.tripplevy.com/participate-in-an-action.
Tripp Levy PLLC is a leading national securities and shareholder rights law firm representing both individual and institutional shareholders and, along with its affiliate, have recovered billions of dollars for shareholders. Tripp Levy PLLC is affiliated with Milberg LLP. The National Law Journal has named Milberg one of the "50 Elite Trial Lawyer Firms" and one of the "50 Leading Plaintiff Firms in America."
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SOURCE Tripp Levy PLLC