LendingClub Corporation (NYSE: LC) Investor Securities Class Action Lawsuit 05/02/2018

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Company Name(s): 
LendingClub
Case Name: 
LendingClub Shareholder Class Action Lawsuit 05/02/2018
Case Status: 
Lawsuit Filed
Case Status: 
Case Dismissed
Affected Securities
NYSE: LC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/02/2018
Class Period Begin: 
02/28/2015
Class Period End: 
04/25/2018
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
07/02/2018
Summary: 

July 27, 2020 - The Court was notified that the plaintiff did not intend to file a third amended Complaint. The Court then dismissed all claims with prejudice.

June 12, 2020 - The Court issued an Order granting Defendants' Motion to Dismiss. The Motion was granted with leave to amend in part and without leave to amend in part.

January 28, 2020 - The defendants filed a Motion to Dismiss the second amended consolidated Complaint.

December 19, 2019 - A second amended consolidated Complaint was filed.

November 4, 2019 - The Court issued an Order granting Defendants' Motions to Dismiss. Plaintiffs were given leave to amend the Complaint.

March 8, 2019 - The defendants filed Motions to Dismiss the consolidated amended Complaint.

January 7, 2019 - A consolidated amended Complaint was filed.

May 2, 2018 - An investor in shares of LendingClub Corporation (NYSE: LC) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by LendingClub Corporation in connection with certain allegedly false and misleading statements made between February 28, 2015 and April 25, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of LendingClub Corporation (NYSE: LC) common shares between February 28, 2015 and April 25, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between February 28, 2015 and April 25, 2018, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) LendingClub Corporation falsely promised consumers they would receive a loan with “no hidden fees”; (2) LendingClub Corporation’s privacy policy did not comply with the Gramm-Leach-Bliley Act; (3) consequently, the foregoing conduct would subject LendingClub Corporation’s business practices to heightened regulatory scrutiny by the Federal Trade Commission; and (4) as a result, defendants’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

San Francisco, CA based LendingClub Corporation operates an online marketplace platform that connects borrowers and investors in the United States. LendingClub Corporation reported that its annual Total Revenue rose from $500.81 million in 2016 to $574.54 million in 2017 and that its Net loss increased from $145.96 million in 2016 to$153.83 million in 2017.

On April 25, 2018, the Federal Trade Commission (“FTC”) announced that it charged LendingClub Corporation with “falsely promising consumers they would receive a loan with ‘no hidden fees,’ when, in actuality, the company deducted hundreds or even thousands of dollars in hidden up-front fees from the loans.” The FTC’s complaint alleges that LendingClub Corporation violated the FTC Act and the Gramm-Leach-Bliley Act. Shares of LendingClub Corporation (NYSE: LC) declined on April 25, 2018 to $2.69 per share.