Law360 (November 5, 2019, 3:01 PM EST) -- LendingClub and its executives slipped out of a proposed shareholder class action over allegedly fraudulent advertising to borrowers after a California federal judge found Monday that the investors failed to prove the misstatements at issue were knowingly false at the time they were made.
U.S. District Judge Beth Labson Freeman dismissed the entire suit, ruling that many of the peer-to-peer lender's purported misstatements were not actionable examples of securities fraud, and that other claims amounted to "second-hand allegations" from a Federal Trade Commission enforcement action against LendingClub.
"The court agrees with defendants that the statements touting LendingClub's focus on compliance, building...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!