Safirstein Metcalf LLP Announces that a Class Action has been Filed Against LendingClub Corporation – LC

Safirstein Metcalf LLP, announces that a class action lawsuit has been filed on behalf of purchasers of the securities of LendingClub Corporation (NYSE:LC) between February 28, 2015 and April 25, 2018, both dates inclusive (the “Class Period”).

If you purchased LendingClub securities during the Class Period and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, email info@SafirsteinMetcalf.com, or use the form located on this page.

If you wish to serve as lead plaintiff, you must move the Court no later than July 2, 2018.   A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.

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 that 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 U.S. Federal Trade Commission (“FTC”); and 4. as a result, Defendants’ public statements were materially false and misleading at all relevant times.

On April 25, 2018, the FTC “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.” The FTC’s complaint against LendingClub states that the Company is “persisting in this conduct despite warnings from its own compliance department that [it’s] concealment of the up-front fee is ‘likely to mislead the consumer.'” Additionally, the FTC’s complaint states that LendingClub’s “internal compliance reviews repeatedly cite the concealment of the fee as a significant problem for consumers.”

Following this news, LendingClub’s stock dropped $0.49 per share, or over 15%, from its previous closing price to close at $2.77 per share on April 25, 2018.