LendingClub Reaches Settlement On DOJ, SEC Investigations - Quick Facts

(RTTNews) - LendingClub (LC) announced it has entered into settlements with the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The DOJ and SEC investigations began in May 2016 as a result of company disclosures. The company said this concludes both investigations for the company and will not have a material impact on LendingClub's operations.

LendingClub Chairman Hans Morris said: "Following an internal review in 2016, LendingClub's Board of Directors accepted the resignation of Renaud Laplanche as Chairman and CEO of the Company. The Board's decision was not made lightly but the violation of the company's business practices, along with a lack of full disclosure by Laplanche during the review, was unacceptable. The allegations made by the DOJ and the findings of the SEC further support the Board's decision to take swift and decisive action."

The company said, as part of the settlement agreement with the DOJ, it will continue to cooperate fully with the DOJ investigation of individuals and entities not released.