Kessler Topaz Meltzer & Check, LLP - Important Deadline Reminder for LendingClub Corporation Investors

RADNOR, Pa., May 08, 2018 -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds LendingClub Corporation (NYSE:LC) (“LendingClub”) investors that a class action lawsuit has been filed in the United States District Court for the Northern District of California against LendingClub on behalf of purchasers of LendingClub publicly traded securities between February 28, 2015 and April 25, 2018, inclusive (the “Class Period”). 

Important Deadline Reminder:  Investors who purchased LendingClub securities during the Class Period may, no later than July 2, 2018, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit https://www.ktmc.com/new-cases/lendingclub-corporation-2018#join

According to the complaint, LendingClub operates an online marketplace platform that connects borrowers and investors in the United States.

The Class Period begins on February 28, 2015, the day after LendingClub filed its annual report on Form 10-K for the year ended December 31, 2014 (“2014 10-K”) with the SEC which provided LendingClub’s annual financial results and position. The 2014 10-K stated LendingClub believed that all installment loans offered through its marketplace featured a fixed rate that was “clearly” disclosed to the borrower and which contained “no hidden fees.”

On April 25, 2018, the Federal Trade Commission (“FTC”) announced in a press release that it had filed a complaint against LendingClub alleging violations of, inter alia, the FTC Act for falsely promising consumers they would receive a loan with “no hidden fees[,]” and the Gramm-Leach-Bliley Act for failing to provide customers with a clear and conspicuous privacy notice so that each customer could reasonably be expected to receive actual notice. The press release stated, in relevant part: “The Federal Trade Commission has charged the 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.”

Following this news, shares of LendingClub fell $.49 per share, or over 15% from its previous closing price to close at $2.77 per share on April 25, 2018.

The complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) LendingClub falsely promised consumers they would receive a loan with “no hidden fees”; (2) LendingClub’s privacy policy did not comply with the Gramm-Leach-Bliley Act; (3) consequently, the foregoing conduct would subject LendingClub’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.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299–7706 or (610) 667–7706, or via e-mail at [email protected].

LendingClub investors may, no later than July 2, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member.  A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation.  In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action.  Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. 

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.  The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars).  The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299-7706
(610) 667-7706
[email protected]