NEW YORK, May 17, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against LendingClub Corporation ("LendingClub" or the "Company") (NYSE: LC). The class action has been filed on behalf of a class consisting of all persons or entities who purchased or otherwise acquired LendingClub 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").
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
LendingClub is a US peer-to-peer lending company, headquartered in San Francisco, California. LendingClub operates an online lending platform that enables borrowers to obtain a loan, and investors to purchase notes backed by payments made on loans.
The Complaint alleges that in connection with the IPO and throughout the Class Period, Defendants made materially false and misleading statements regarding the LendingClub's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) LendingClub's internal controls were insufficient to guarantee LendingClub's loan criteria; (2) LendingClub's internal controls were insufficient to ensure that pertinent interests in third-party transactions were completely and appropriately disclosed; and (3) consequentially, LendingClub's public statements were materially false and misleading at all relevant times.
On May 9, 2016 Lending Club announced in regulatory filing, "that on May 6, 2016, the board of directors accepted the resignation of Renaud Laplanche as Chairman and CEO. His resignation followed an internal review of sales of $22 million in near-prime loans to a single investor, in contravention of the investor's express instructions as to a non-credit and non-pricing element, in March and April 2016."
Following this news, LendingClub stock fell $1.81 per share or 25.49%, during premarket trading to trade at $5.29 per share on May 9, 2016. On May 9, 2016 Lending Club announced in regulatory filing, "that on May 6, 2016, the board of directors accepted the resignation of Renaud Laplanche as Chairman and CEO. His resignation followed an internal review of sales of $22 million in near-prime loans to a single investor, in contravention of the investor's express instructions as to a non-credit and non-pricing element, in March and April 2016."
In the same filing, 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." New sources reported that Laplanche had failed to fully disclose a personal interest he held in Cirrix Capital while LendingClub was considering investing in it as Laplanche had proposed to LendingClub's risk-management committee. LendingClub's Board Member, John Mack also held an undisclosed interest in Cirrix Capital. Following this news, LendingClub stock fell $2.48 per share, or nearly 35%, to close at $4.62 per share on May 9, 2016. Later on May 9, 2016, news sources reported that the SEC was investigating LendingClub.
On May 10, 2016, Bloomberg reported that Goldman Sachs and Jefferies had ceased their purchases of LendingClub loans and on that same day, the U.S. Treasury Department issued a White Paper which marked LendingClub as "untested" and in need for additional regulation. Following this news, LendingClub stock fell $0.52 per share, or 11.3%, to close at $4.10 per share on May 10, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website: http://www.bgandg.com/#!lc/qq203. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in LendingClub you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
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SOURCE Bronstein, Gewirtz & Grossman, LLC