NEW YORK, NY / ACCESSWIRE / July 14, 2016 / Bronstein, Gewirtz & Grossman, LLC, reminds investors of class action against LendingClub Corporation ("LendingClub" or the "Company") (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."