LendingClub Hit With Stock-Drop Class Action

Law360, Los Angeles (May 17, 2016, 7:57 PM EDT) -- LendingClub investors on Monday slapped the online marketplace lender with a putative class action in California federal court, the first shareholder lawsuit in the wake of stock-plunging revelations that $22 million in loan sales were mishandled and the resignation of the company’s CEO.

Lead plaintiff Steeve Evellard alleges that LendingClub Corp. misled shareholders about the peer-to-peer lending company’s compliance practices, specifically around the adequacy of internal controls to ensure that loans conformed to its customers’ criteria, among other concerns, according to the complaint.

“As a result...
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