A Deadline is coming up on October 5, 2015 in the lawsuit for investors in On Deck Capital Inc (NYSE:ONDK and NYSE:ONDK stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/05/2015 -- A deadline is coming up on October 5, 2015 in the lawsuit filed for investors of On Deck Capital Inc (NYSE:ONDK over alleged securities laws violations by On Deck Capital.
Investors who purchased shares of On Deck Capital Inc (NYSE:ONDK) have certain options and there are strict and short deadlines running. Deadline: October 5, 2015. NYSE:ONDK stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
According to the complaint filed in New York the plaintiff alleges on behalf of purchasers of On Deck Capital Inc (NYSE:ONDK) common shares in connection with the Company's December 16, 2014 initial public offering, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that defendants made false and/or misleading statements and/or failed to disclose that the true rate of default for On Deck Capital's loan portfolio was steadily increasing, that the true value of the Company's loan portfolio was in material decline, and that as a result of the foregoing, On Deck Capital's public statements were materially false and misleading at all relevant times.
On February 11, 2015, less than two months after the IPO, an article was published entitled "On-Deck Capital: Bad Loans, Bad Interest Rates, Bad Business Plan." The article described, in part, how On Deck Capital's Registration Statement significantly understated the default rate for On Deck Capital's loan portfolio.
On February 23, 2015, On Deck Capital Inc reported its fourth quarter and full year 2014 financial results. On Deck Capital Inc reported that its annual Total Revenue rose from $65.25 million in 2013 to $158.06 million in 2014 and that its Net Loss declined from $24.36 million in 2013 declined to $18.71 million in 2014.
On March 18, 2015, Compass Point Research & Trading, LLC published a report that detailed concerns with On Deck Capital'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 Capital Inc investors. According to the Compass Point Report On Deck Capital's unsustainable business model could ultimately lead to slower growth and higher expenses. Accordingly, Compass Point assigned a "Sell" rating to On Deck Capital Inc stock.
On May 4, 2015, On Deck Capital Inc reported its first quarter 2015 financial results. Among other things, On Deck Capital Inc also issued its second quarter 2015 and fully year 2015 guidance. Shares of On Deck Capital Inc (NYSE:ONDK) declined on July 1, 2015 to as low as $11.15 per share.
On July 1, 2015, 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 plaintiff claims that the significant drop in share price came after news reports of rising default rates in On Deck Capital Inc's loan portfolios and declining value of its business model. On Deck Capital Inc 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.
Those who purchased NYSE:ONDK shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego