Securities Class Action Lawsuit Against On Deck Capital
Gilman Law LLP announces that a class action lawsuit has been filed against On Deck Capital, Inc. (“On Deck” or the “Company”) (NASDAQ: ONDK), certain of its officers, and the underwriters of the Company’s initial public offering of common stock in December, 2014 (the “IPO”), in the United States District Court for the Southern District of New York on behalf of a class of persons who purchased or otherwise acquired On Deck securities pursuant and/or traceable to On Deck’s IPO. The class action alleges violations of the federal securities laws under the Securities Exchange Act of 1933 (the “1933 Act”).
The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose information in the Company’s registration statement issued in connection with the IPO relating to the true rate of default for and the true value of the Company’s loan portfolio, specifically that the loan portfolio default rate was steadily increasing and the loan portfolio value was in material decline.
The Company raised approximately $240 million in the IPO pursuant to the issuance of 11,500,000 shares at an offering price of $20 per share. After reports of increasing default rates in its loan portfolios and the declining value of its business model, On Deck common stock dropped to a low of $11.15 per share on July 1, 2015, only six months after the IPO. The drop represents a decline of over 40% from the IPO price and of over 60% from its almost $29 per share high on December 18, 2014. The Company’s stock price has declined further closing at on August 4, 2015 at $10.47 per share.
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