LendingClub Securities Litigation
HomeCase DocumentsContact UsFile Claim

Welcome to the LendingClub Securities Litigation Website

This website has been established to provide general information related to the proposed settlement of the actions captioned In re LendingClub Securities Litigation, Case No. 3:16-cv-02627-WHA (the "Federal Litigation") and In re LendingClub Corporation Shareholder Litigation, Case No. CIV 537300 (the “State Litigation”). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated February 21, 2018, which can be found and downloaded by clicking on the Case Documents tab above.


The Federal Litigation is currently pending in the United States District Court for the Northern District of California (the “Court”) before the Honorable William Alsup and the State Litigation is currently pending before the Honorable Marie S. Weiner of the Superior Court of the State of California, County of San Mateo (the "State Court"). The entity that leads the Federal Litigation, Water and Power Employees’ Retirement, Disability and Death Plan of the City of Los Angeles ("WPERP"), is called the Federal Lead Plaintiff and Kathy Geller, Dylan Youngblood, and Alton Consulting LLC are the State Class Representatives.  The individuals and entities sued are called the Defendants.  The Court appointed the law firm of Robbins Geller Rudman & Dowd LLP to represent the Class in the Federal Litigation. These lawyers are called Federal Lead Counsel.  The State Court appointed the law firms of Scott+Scott, Attorneys at Law, LLP and Cotchett, Pitre & McCarthy, LLP to represent the class in the State Litigation. These lawyers are called State Lead Counsel.

The Federal Litigation alleges violations of §11 of the 1933 Act against all Defendants, §15 of the 1933 Act against Laplanche, Dolan and the Director Defendants, and §§10(b) and 20(a) of the Exchange Act against LendingClub, Laplanche, and Dolan. Federal Lead Plaintiff alleged that LendingClub, Laplanche and Dolan made certain misstatements and omissions concerning LendingClub’s internal controls, data integrity and security, and related-party transactions in communications with investors who purchased LendingClub common stock from December 11, 2014 through May 6, 2016, and that these Defendants violated §10(b) of the Exchange Act, as well as SEC Rule 10b-5 promulgated thereunder, by making such statements or omissions knowingly or with extreme recklessness, and caused the price of LendingClub common stock to be artificially inflated during the period from December 11, 2014 through May 6, 2016. Federal Lead Plaintiff also asserted claims under §§11 and 15 of the 1933 Act on behalf of investors who purchased LendingClub common stock traceable to LendingClub’s IPO, because LendingClub’s offering materials allegedly contained material misstatements and/or omissions concerning LendingClub’s internal controls, data integrity and security, and related-party transactions.

The State Litigation alleges violations in connection with LendingClub’s IPO. The State Litigation alleged that Defendants had violated §§11, 12(a)(2) and 15 of the 1933 Act by selling, or offering to sell, LendingClub shares pursuant to offering materials that contained materially false or misleading statements and/or omitted to disclose material information required to be disclosed therein. The State Court consolidated the case and several others in the spring of 2016. The State Class Representatives filed their initial Consolidated Complaint on June 15, 2016, and thereafter filed an Amended Consolidated Complaint on August 26, 2016.

On November 28, 2017, the parties engaged in an in-person settlement conference before Chief Magistrate Judge Joseph C. Spero, pursuant to an order of the Court. The settlement conference was preceded by submission of settlement conference statements and exhibits by each party. Settlement discussions were unsuccessful at that settlement conference. On January 29, 2018, the parties engaged in another in-person settlement conference before Judge Spero, pursuant to an order of the Court. The parties submitted amended settlement conference statements. The parties engaged in arm’s-length negotiations during the mediation session. At the end of the conference, Judge Spero made a mediator’s proposal to Federal and State Lead Counsel and counsel for LendingClub, which was accepted as Judge Spero advised on February 5, 2018. Thereafter, all parties reached an agreement-in-principle to resolve the Litigations on the terms set forth in the Stipulation, subject to approval by the Court.

Federal Lead Plaintiff and the State Class Representatives have agreed to settle all claims and grant Defendants and the Released Defendants a full and complete release of all Released Claims in exchange for a cash payment of $125,000,000 (the “Settlement Amount”). The Settlement Amount plus any interest earned thereon is called the “Settlement Fund.” The “Net Settlement Fund” (the Settlement Fund less any attorneys’ fees and expenses approved by the Court and less Notice and Administration Expenses, Taxes and Tax Expenses, and other Court-approved deductions) will be distributed pursuant to the plan of allocation that is approved by the Court (the “Plan of Allocation”), which determines how the Net Settlement Fund will be allocated among Class Members who become eligible to participate in the distribution of the Net Settlement Fund.

The Class includes all persons and entities who purchased or otherwise acquired LendingClub common stock from December 11, 2014 through May 6, 2016 (for claims under the Exchange Act), and were damaged thereby, and all those who purchased or acquired LendingClub common stock during the period from December 10, 2014 through June 8, 2015 (for claims under the 1933 Act), and were damaged thereby, except those Persons and entities that are excluded. Excluded from the Class are persons who timely and validly request exclusion from the Class; Defendants and their immediate families, the officers, directors, and affiliates of Defendants, at all relevant times, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which Defendants have or had a controlling interest. Notwithstanding the foregoing, the Class shall include any investment company or pooled investment fund, including, but not limited to, mutual fund families, exchange traded funds, fund of funds and hedge funds, in which the Underwriter Defendants, or any of them, have, has or may have a direct or indirect interest, or as to which any Underwriter Defendant’s affiliates may act as an investment advisor, but as to which any Underwriter Defendant alone or together with any of its respective affiliates is neither a majority owner nor the holder of a majority beneficial interest. 

Although the information in this website is intended to assist you, it does not replace the information contained in the relevant case documents found on the Case Documents tab above. We recommend that you read the relevant case documents carefully.


Submit a Proof of Claim This is the only way to be eligible to get a payment from the settlement. If you wish to participate in the settlement, you will need to complete and submit a Proof of Claim. Class Members who do not complete and submit the Proof of Claim in accordance with the instructions on the Proof of Claim and do not submit it within the time required will be bound by the settlement but will not participate in any distribution of the Net Settlement Fund. Proofs of Claim and Release must be postmarked or submitted online on or before June 25, 2018.
Exclude Yourself You will not be bound by the results of the Litigations, and you will not receive any payment. This is the only option that allows you to ever bring or be part of any other lawsuit against the Released Defendants about the legal claims related to the issues raised in the Litigations. Written requests for exclusion must be received no later than June 25, 2018.
Object If you believe the settlement is objectionable in any respect, you may write to the Court about why you oppose the settlement, the Plan of Allocation, and/or the request for attorneys’ fees and expenses. You will still be a Class Member. Written objections must be received by the Court on or before June 25, 2018.
Go to the Hearing You do not need to attend the hearing unless you wish to speak either in support of the settlement or in support of any objection you may have submitted, and have submitted to Federal and State Lead Counsel a Notice of Intention to Appear. Notices of Intention to Appear must be received no later than July 12, 2018.
Do Nothing If you are a Class Member and do not submit a Proof of Claim, you will not be eligible to receive any payment from the Settlement Fund. You will, however, be bound by the settlement, unless you have requested exclusion from the Class.


Submit Claim June 25, 2018
Request Exclusion June 25, 2018
File Objection June 25, 2018
Submit Notice of Intention to Appear July 12, 2018
Settlement Hearing  July 19, 2018, at 8:00 a.m.