Author Topic: LC Securities Litigation Class Action Settlement  (Read 3018 times)

PennySaved

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LC Securities Litigation Class Action Settlement
« on: May 12, 2018, 01:33:11 PM »
I received in the mail today a Notice of Pendency and Proposed Settlement of Class Action for folks who purchased LC stock between December 10, 2014 through May 6, 2016.  I still have my 175 shares of LC stock purchased Dec 11, 2014 at $15 per share (now worth $3.32 per share).  Net recovery for class members is estimated to be $106.835 million.  So I am in the process of filling out the claim form which must be submitted no later than June 25, 2018.  I wondering if anyone else on the forum is making a claim and I had a few questions (below).

All the information I received in the mail about this proposed settlement can be found at
http://www.lendingclubsecuritiesclassaction.com/
The claim form instructions at
http://www.lendingclubsecuritiesclassaction.com/media/1352097/v5_lbs_poc_040518_final-web.pdf states:

II. CLAIMANT IDENTIFICATION
If you purchased or otherwise acquired LendingClub Corporation (“LendingClub”) common stock and held the certificate(s) in your name, you are the beneficial purchaser or acquirer as well as the record purchaser or acquirer. If, however, you purchased or acquired LendingClub common stock and the certificate(s) were registered in the name of a third party, such as a nominee or brokerage firm, you are the beneficial purchaser or acquirer, and the third party is the record purchaser or acquirer.

Use Part I of this form entitled “Claimant Identification” to identify each purchaser or acquirer of record (“nominee”), if different from the beneficial purchaser or acquirer of the LendingClub common stock that forms the basis of this claim. THIS CLAIM MUST BE FILED BY THE ACTUAL BENEFICIAL PURCHASER(S) OR ACQUIRER(S) OR THE LEGAL REPRESENTATIVE OF SUCH PURCHASER(S) OR ACQUIRER(S) OF THE LENDINGCLUB COMMON STOCK UPON WHICH THIS CLAIM IS BASED.


My shares were purchased through Fidelity Investments as the broker and remain in my Fidelity account so does that mean the certificates were registered in Fidelity’s name?  I assume I would be the “beneficial purchaser or acquirer” and that Fidelity would be the “record purchaser or acquirer.”  I am confused about where to put the name of the on the claim form (See page 3 of proof of claim and release of webpage above).  Below from the claim form are some of the fields I have questions about:

Last Name M.I. First Name (I would put my name here)

Check either IRA, Joint Tenancy, Employee, Individual, or Other (I would check individual, correct?)

Company Name (Beneficial Owner - If Claimant is not an Individual) or Custodian Name if an IRA (I would leave this blank, because I am the beneficial owner and I am an individual)

Trustee/Asset Manager/Nominee/Record Owner’s Name (If Different from Beneficial Owner Listed Above) (I would put Fidelity Investments here as record owner, correct?)

Account#/Fund# (Not Necessary for Individual Filers) (So do I include my Fidelity brokerage account number that shows my LC share information?  But it says not necessary for individual filers, and I am an individual filer, correct?  I have to submit with the claim form documentation showing my purchase of LC stock in December 2014 and my holdings as of May 6, 2016 and April 9, 2018 so I think it would be necessary/beneficial to show my account number)

My only documentation that I still had the stock as of April 9, 2018 is a copy of my online account balance-it does not show my name on the screen and only shows my partial account number.  The statements for this account are only issued quarterly and the next statement won’t be issued until June 30, 2018 and the claim must be submitted by June 25, 2018.  But my statements from December 31, 2014 and June 30, 2016 have my full account number, so I guess the claim reviewers can match up my online screen LC balance information to that account number.

I just want to make sure I don’t screw up something on submitting the claim form. According to page 15 of the Notice and Pendency and Proposed Settlement of Class Action (http://www.lendingclubsecuritiesclassaction.com/media/1352094/v7_lbs_notice_040518_final.pdf), I could get up to:

for shares retained at the end of April 9, 2018, the claim per share shall be $5.01 per share ($1.98 per share (25% of the decline from the $15.00 IPO price to the $7.10 May 6, 2016 closing price), plus $3.03 per share (the May 9, 2016 and May 10, 2016 market adjusted price declines)).

Rob L

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Re: LC Securities Litigation Class Action Settlement
« Reply #1 on: May 12, 2018, 05:09:21 PM »
I've been waiting for this.
I haven't been to the mailbox today but I expect I will find the same letter when I do. My broker is/was Fidelity.
If I don't get that letter then you've just done me a very good! Thanks.

On 5/3/2016 I bought 2500 shares of LC at $7.1399 per share.
I remember OnDeck had released poor quarterly results and LC's stock was down.
I thought LC would have a good quarter and their stock was simply down in sympathy with OnDeck. Duh?

Then the scandal hit.
I immediately sold my 2500 shares on Monday 5/9/2016 at $5.3801.

My loss was ($7.1399 - 5.3801) x 2500 = $4,399.50. A loss of $1.7598 per share (24.6%).

Per the agreement in the link you provided:

(b) for shares sold on May 9, 2016, the claim per share is 93% of the lesser of:
(i) $2.46 per share (the May 9, 2016 market adjusted price decline), and
(ii) the difference between the purchase price per share and the sales price per share;


So, my settlement should be:  $1.7598 x 2500 x 93% = $4,091.53

It's about time! Hope there's enough money in the settlement to pay me the full amount.

I'll be filling out the same paperwork and will be talking to Fidelity to make sure I get it right.
My transaction was in my IRA account so it will be a little different than yours.
As proof I believe I still have my trading confirmations and I will mail copies with the claim form.


Fred93

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Re: LC Securities Litigation Class Action Settlement
« Reply #2 on: May 12, 2018, 06:28:16 PM »
My only documentation that I still had the stock as of April 9, 2018 is a copy of my online account balance-it does not show my name on the screen and only shows my partial account number.  The statements for this account are only issued quarterly and the next statement won’t be issued until June 30, 2018 and the claim must be submitted by June 25, 2018.  But my statements from December 31, 2014 and June 30, 2016 have my full account number, so I guess the claim reviewers can match up my online screen LC balance information to that account number.

Fidelity keeps all the confirms, statements, and 1099s online for many years.  2014 is still online.  2018 of course is online.

You can simply download the  confirmations for those transactions from the Fidelity web site and send them.

Debt Free

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Re: LC Securities Litigation Class Action Settlement
« Reply #3 on: May 12, 2018, 07:09:22 PM »
Yes, we all got the same notice.

However, when I skimmed through it this morning, I found this clause...

"Based on the analysis performed by Federal Lead Plaintiff and its damages experts, the estimated average recovery per share for a Class Member from the Settlement Fund (before the deduction of any Court-approved fees, expenses and costs as described herein) would be approximately $0.45 per share...(sic if all Class Members participate, yada yada)"

Again, I just skimmed it before I left, but that is the one thing that jumped out at me considering it last closed at $3.32.

PennySaved

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Re: LC Securities Litigation Class Action Settlement
« Reply #4 on: May 12, 2018, 09:34:52 PM »
Yes, the payout could be lower than the formulas if all eligible Class members submit. Pages 14-15 of Notice of Pendency and Proposed Settlement of Class Action also says that 36% of the net settlement will go to those who purchased shares from 12/10/14 through 6/8/15 and 64% would go to those who purchased shares from 6/9/15 through 5/8/16   So I guess depending on how many eligible people file claims, the payout may be limited and proportioned.





Rob L

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Re: LC Securities Litigation Class Action Settlement
« Reply #5 on: May 13, 2018, 09:56:08 AM »
Yes, we all got the same notice.

However, when I skimmed through it this morning, I found this clause...

"Based on the analysis performed by Federal Lead Plaintiff and its damages experts, the estimated average recovery per share for a Class Member from the Settlement Fund (before the deduction of any Court-approved fees, expenses and costs as described herein) would be approximately $0.45 per share...(sic if all Class Members participate, yada yada)"

Again, I just skimmed it before I left, but that is the one thing that jumped out at me considering it last closed at $3.32.

Ouch!! Guess it is what it is.



Rob L

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Re: LC Securities Litigation Class Action Settlement
« Reply #6 on: May 13, 2018, 04:26:40 PM »
Part II D. Number of shares of LC held at the close on 4/9/2018.   Proof enclosed?  Y / N
Guess I need to include my April 2018 statement to prove didn't own any LC stock on that date.
I could have missed that.

Gonna send my May 2016 statement (along with both the trade confirms).
Ripley: Nuke the site from orbit; it's the only way to be sure :)

Rob L

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Re: LC Securities Litigation Class Action Settlement
« Reply #7 on: May 13, 2018, 05:20:07 PM »
And I decided to submit my claim online and uploaded four proof of claim PDF files with the application;
purchase trade confirmation, sale trade confirmation, May 2016 account statement and April 2018 account statement.

I received the following confirmation:

Dear Claimant,

This automated email is confirmation of your recent online claim submission in the LendingClub Securities Litigation settlement.

Your claim number is: LBS-XXXXXX-X

You must keep us informed if your address changes.

We are currently accepting and processing claims for this case. Claims
processing in settlements such as this can take an average of nine months to
a year before distribution is approved, and in some instances there may be
additional delays due to appeals or other issues.


We thank you for your patience. If we have any questions or need additional
information on your claim we will contact you by one of the contact methods
which you provided in your submitted claim. Please note that we are not able to
provided distribution amounts until claims processing is complete and distribution
of the Settlement Fund has been approved by the Court.

Sincerely,

LendingClub Securities Litigation
Claims Administrator
c/o Gilardi & Co. LLC
P.O. Box 404041
Louisville, KY 40233-4041
info@LendingClubSecuritiesClassAction.com

yojoakak

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Re: LC Securities Litigation Class Action Settlement
« Reply #8 on: May 13, 2018, 09:55:02 PM »
So someone buying at the IPO and selling at a gain is not eligible for this, right?

Rob L

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Re: LC Securities Litigation Class Action Settlement
« Reply #9 on: May 14, 2018, 09:00:48 AM »
I believe they are required to file a claim and return a percentage of the profits made (plus interest).

nonattender

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Re: LC Securities Litigation Class Action Settlement
« Reply #10 on: January 05, 2019, 10:03:02 PM »
And I decided to submit my claim online and uploaded four proof of claim PDF files with the application;
purchase trade confirmation, sale trade confirmation, May 2016 account statement and April 2018 account statement.

I received the following confirmation:

Dear Claimant,

This automated email is confirmation of your recent online claim submission in the LendingClub Securities Litigation settlement.

Your claim number is: LBS-XXXXXX-X

You must keep us informed if your address changes.

We are currently accepting and processing claims for this case. Claims
processing in settlements such as this can take an average of nine months to
a year before distribution is approved, and in some instances there may be
additional delays due to appeals or other issues.


Did you hear anything else / get a check, yet?  Coming up on nine months...

Tangentially, I haven't been paying attention;  is the total exposure amount fixed and declared and accounted for in an LC SEC filing, yet?
« Last Edit: January 05, 2019, 10:17:39 PM by nonattender »
A little nonsense now and then is relished by the wisest men.

Rob L

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Re: LC Securities Litigation Class Action Settlement
« Reply #11 on: January 06, 2019, 10:39:13 AM »
The motion for approval of a $125m settlement was signed by the judge on 20 July 2018 (the 49th anniversary of first moon landing).
I'm sure it's on LC's books and appears in their quarterly and annual SEC filings.
https://www.rgrdlaw.com/cases-in-re-lendingclub-securities-litigation.html

From the link above:

"4. By AUGUST 10 AT NOON the parties shall submit a final class list (with names and
cities) setting forth the class members bound by the class settlement."

I haven't heard a peep. If the class list is public information I haven't been able to find it.