LendingClub Gets Investors' Hidden-Fee Suit Tossed

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...

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