SAN DIEGO, Aug. 6, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/ondeck/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of On Deck Capital, Inc. ("On Deck") (NYSE: ONDK) common stock pursuant or traceable to the Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with On Deck's December 17, 2014 initial public stock offering (the "IPO").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 4, 2015. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/ondeck/. Any member of the putative 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.
The complaint charges On Deck, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933. On Deck is an online subprime commercial lender offering small businesses quick-approval 3- to 24-month loans at interest rates exponentially higher than those offered by traditional banks.
On December 17, 2014, On Deck commenced the IPO and issued 11.5 million shares of common stock at $20 per share pursuant to the Registration Statement. The complaint alleges that the Registration Statement issued in connection with the IPO contained untrue statements of material fact and omitted to state material facts both required by governing regulations and necessary to make the statements made not misleading. The Registration Statement failed to disclose already occurring shifts in the Company's lending practices to less profitable channels and longer term loans, which were negatively affecting, among other things, On Deck's interest rate spread, effective interest yield, annual percentage rates ("APR") and earnings.
In late February and early March 2015, On Deck issued its first public financial reports, which disclosed that On Deck's once constant effective interest yield had dropped 10% sequentially to 38.7% in the fourth quarter of 2014, caused by On Deck's shift to less profitable channels and longer term loans. On this news, the price of On Deck common stock dropped to as low as $16.08 per share on March 5, 2015. Then, on May 4, 2015, On Deck issued a press release announcing its second quarter 2015 financial results, disclosing yet another over 10% decline in effective interest yield as well as a nearly 20% year-over-year decline in APR.
Plaintiff seeks to recover damages on behalf of all purchasers of On Deck common stock pursuant or traceable to the Registration Statement issued in connection with On Deck's December 17, 2014 IPO (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/ondeck/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP