The Shareholders Foundation has filed a lawsuit in California on behalf of some purchasers of shares of Lending Club over alleged securities law violations by the marketplace lender.
The suit alleges Lending Club made inaccurate statements and/or failed to disclose inadequate internal controls that rendered its public statements materially false and misleading.
On May 6, Lending Club accepted the resignation of CEP Renaud Laplanche following an internal review showed the company sold $22 million of loans made to borrowers with low credit scores to a single investor in violation of that investor’s “specific instructions”.
Laplanche also failed to fully disclose a personal interest he held in Cirrix while Lending Club was considering investing in Cirrix. He was alleged to have personally proposed that investment to Lending Club’s risk management committee.
Concerned shareholders should contact the Shareholders Foundation, Inc. by e-mail at [email protected] or call +1 (858) 779-1554.