A lawsuit was filed on behalf of investors in On Deck Capital Inc (NYSE:ONDK) shares over alleged securities laws violations and NYSE:ONDK investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/26/2015 -- An investor, who purchased NYSE:ONDK shares filed a lawsuit over alleged violations of Federal Securities Laws by On Deck Capital Inc in connection with certain allegedly false and misleading statements made in connection with the Company's December 16, 2014 initial public offering ("IPO").
Shares of On Deck Capital Inc (NYSE:ONDK) declined from $27.98 per share in December 2014 to as low as $7.75 per share on August 24, 2015.
Investors who purchased shares of On Deck Capital Inc (NYSE:ONDK) have certain options and for certain investors are short and strict deadlines running. Deadline: October 5, 2015.. NYSE:ONDK investors should contact the Shareholders Foundation at mail@shareholdersfoundation or call 858-779-1554.
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 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 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 shares of On Deck Capital Inc (NYSE:ONDK) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego