A lawsuit was filed on behalf of investors in NYSE:LC shares over alleged securities laws violations. NYSE:LC investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/21/2016 -- A shareholder of LendingClub Corp (NYSE:LC) filed a lawsuit over alleged Securities Laws violations by LendingClub in connection with LendingClub's December 11, 2014 Initial Public Offering (the "IPO").
Investors who purchased shares of LendingClub Corp (NYSE:LC) have certain options and should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
The plaintiff alleges on behalf of purchasers of LendingClub Corp (NYSE:LC) common stock pursuant to and/or traceable to LendingClub's December 11, 2014 IPO, , that the defendants violated Federal Securities Laws. The plaintiff claims that the documents filed in connection with the IPO contained allegedly materially false and misleading statements and/or failed to disclose that LendingClub had an unsustainable business model dependent on its ability to issue loans with usurious rates, that LendingClub's loan investors would not be able to enforce the high rates because they were illegal, that without the usurious rates, the loans generated through LendingClub's marketplace would not be attractive to investors because they had a high credit risk, and that a substantial portion of LendingClub's loans were issued with rates in excess of those allowed by applicable state usury laws.
On December 11, 2015, it was reported that "the California Department of Business Oversight, which oversees securities and lending activity in that state, sent requests to 14 companies for details about their lending practices, investors and business models." It was then reported that on December 14 a spokesman for the Department of Business Oversight, sent out an email naming LendingClub as one of the 14 companies.
LendingClub Corp reported that its annual Total Revenue rose from $285.45 million in 2013 to $567.74 million in 2014 while its Net Income of $7.31 million declined to Net Loss of $32.89 million in 2014.
Shares of LendingClub Corp (NYSE:LC) declined from $25.74 per share in December 2014 to as low as $6.68 per share on January 20, 2016.
On March 17, 2016, NYSE:LC shares closed at $8.40 per share.
Those who purchased shares of LendingClub Corp (NYSE:LC) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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