BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors of On Deck Capital, Inc. ("On Deck Capital" or the "Company") (NYSE:ONDK). Investors who purchased or otherwise acquired On Deck Capital securities pursuant and/or traceable to On Deck’s Registration Statement and Prospectus issued in connection with the Company’s December 16, 2014 initial public offering (“IPO”) have until October 5, 2015 to file a motion for appointment as a lead plaintiff.
On Deck provides financing products to medium and small businesses in the United States. It offers fixed term loans and revolving line of credit, the company mainly processes and services its loans through its online platform. On December 16, 2014, On Deck priced its initial public offering (“IPO”) at $20.00, and sold 11.5 million shares of stock.
According to the complaint, the Company and its executives have made materially false and misleading statements regarding the Company’s business and operations. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the true rate of default for the Company’s loan portfolio was steadily increasing; (2) the true value of the Company’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. Just six months after its IPO, On Deck common stock has dropped below $12 per share, a decline of over 40% from the IPO price, following news reports of rising default rates in On Deck’s loan portfolios, and the declining value of its business model.
If you purchased On Deck Capital securities pursuant to the Company’s IPO you may move the Court no later than October 5, 2015 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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