Please list your purchase and sale transaction(s) in the On Deck Capital, Inc.(NYSE: ONDK) security that is subject of this action pursuant and/or traceable to the company’s December 16, 2014 initial public offering (“IPO”):
Notice is hereby given that a class action lawsuit has been filed on behalf of those who acquired On Deck Capital, Inc., (“On Deck”) (NYSE: ONDK) securities pursuant and/or traceable to the company’s December 16, 2014 initial public offering (“IPO”).
According to the complaint, On Deck provides financing products to small businesses in the United States. The company offers fixed term loans and revolving lines of credit and processes and services its loans through its online platform.
The complaint alleges that the defendants made materially false and misleading statements regarding the On Deck’s business, operational and compliance policies. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) the true rate of default for the On Deck’s loan portfolio was steadily increasing; (2) the true value of the On Deck’s loan portfolio was in material decline; and (3) as a result of the foregoing, On Deck’s public statements were materially false and misleading at all relevant times.
On December 15, 2014, On Deck filed its amended Registration Statement for the IPO, which became effective on December 17, 2014. Pursuant to the IPO, 11,500,000 shares of On Deck common stock were sold including 1,500,000 shares purchased by the certain underwriter defendants pursuant to exercise of their over-allotment option at the price to the public of $20.00 per share.
Less than two months after the IPO, on February 11, 2015, SeekingAlpha.com published an article entitled On-Deck Capital: Bad Loans, Bad Interest Rates, Bad Business Plan. The article described, in part, how the company’s Registration Statement significantly understated the default rate for its loan portfolio. Then, on March 18, 2015, Compass Point Research & Trading, LLC published a research report that detailed concerns with On Deck’s business model, including inherent risks surrounding an untested credit model, growing competition, uncertainty with regard to interest rates, and anticipated regulatory threats, all of which created a risky environment for On Deck investors.
Finally, the complaint alleges that there were news reports of rising default rates in On Deck’s loan portfolios and declining value of its business model. According to the complaint, On Deck was reportedly losing tens of millions of dollars through defaults on its loans, likely due to the company’s reliance on stated income and data from third-party sources, which may have contained inaccuracies. On July 1, 2015, On Deck common stock dropped to a low of $11.15 per share, a decline of over 40% from the IPO price and over 60% from its almost $29 per share high on December 18, 2014.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706