LendingClub Executives Under Investigation for False Statements
We are investigating whether certain officers and directors of LendingClub Corporation (NYSE: LC) breached their fiduciary duties by causing the company to issue false and misleading statements. LendingClub is an online peer-to-peer marketplace that matches lenders and borrowers for a variety of loans.
On May 25, 2017, the United States District Court for the Northern District of California issued an order upholding securities class action claims against LendingClub and certain of its officers and directors. The securities class action alleges that during the period December 11, 2014 through May 6, 2016, the defendants misrepresented key aspects of the company’s business, inflating the price of the company’s stock. Specifically, on May 9, 2016, LendingClub revealed that its Founder and CEO Renaud Laplanche had resigned following the completion of an internal review, which had uncovered improper loan transactions and personal investments. LendingClub later announced that it had identified “material weaknesses” in internal controls related to the “tone at the top,” and needed to take “remediation steps” to address the problems.
Schubert Jonckheer & Kolbe's investigation concerns when and how much certain of LendingClub’s officers and directors knew about these practices. Shareholders interested in seeking the recovery of damages on behalf of LendingClub and securing other remedial measures should contact the firm.
If you are a long-term holder of LendingClub stock and wish to obtain additional information—or would like to participate in a potential shareholder derivative action—please complete the form below for a free legal consultation.