Securities Law News

LendingClub Beats Investor Suit Over Fees, Other Loan Practices

Nov. 5, 2019, 9:55 PM

LendingClub Corp. doesn’t have to face allegations it misled investors about hidden fees and other deceptive lending practices because of a lack of material false statements, a California federal judge held.

Investors said the online lender kept secret details about undisclosed fees, late-stage rejections, and withdrawals from customer bank accounts without permission. But the would-be class’s allegations aren’t sufficient to support the claims, the U.S. District Court for the Northern District of California said Nov. 4.

LendingClub allegedly told investors it was committed to regulatory compliance and customer trust. But many of those statements were inactionable “examples of corporate...

To read the full article log in. To learn more about a subscription click here.