Chancery Scraps LendingClub Investors' Suit Over FTC Probe

Law360 (March 30, 2021, 8:43 PM EDT) -- Delaware's chancellor dismissed a derivative suit Tuesday that accused online venture LendingClub Corp. of misleading stockholders about a Federal Trade Commission investigation, finding that the suing investors failed to justify bypassing LendingClub's board on the way to court.

Chancellor Andre G. Bouchard said in a 56-page decision that the complaint fell short of alleging specific facts showing that a majority of the lender's directors were incapable of fairly considering or potentially pursuing the claims themselves, including allegations that the company had failed to put a compliance monitoring system in place.

The suit also failed to show that directors consciously tolerated violations...

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!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!