LendingClub’s shares fell dramatically on Monday as the company underwent management changes as well as a scandal that occurred in May involving altered documentation and problematic loan sales.
The San Francisco based online lender experienced a second-quarter loss of $81.4 million, or 21 cents per share, compared to a loss of $4.1 million, or 1 cent per share, a year ago. Shares rose 4 cents to $4.79 a share Monday, but slipped 9 cents to $4.70 in after-hours trading.
As of yet, LendingClub has lost two-thirds of their value over the past year due to a series of unfortunate events. The company has lost $72 million over the past 12 months on revenue of $507.5 million.
This came after Chief Financial Officer Carrie Dolan announced her departure from the company to “pursue a new opportunity,” according to a public statement.
Dolan, who worked with LendingClub for nearly six-years, was set on leaving earlier in the year, but was forced to wait due to the resignation of the company’s former CEO.
Bradley Colemen has been chosen as the companies interim CFO and principle accounting officer in the meantime. Since 2013, Coleman has been the company’s controller and will now continue on that role along with his new responsibilities.
In May, former CEO Mr. Laplanche was thrown out of the company after a scandalous lawsuit involving reports of a problematic sale of loans. The company was subpoenaed by the U.S. Department after an investigation revealed more than $22 million in problematic loan sale.
An internal investigation also later revealed that in an attempt to boost the company’s volumes, Mr. Laplanche had taken out 32 loans on the platform in December 2009 to boost the company’s volumes just four months prior to closing a round of venture capital funding.
It was also revealed that Mr. Laplanch had used LendingClub’s shares to secure personal loans.
While the company is currently in a tumultuous position, newly appointed CEO Scott Sanborn remains optimistic.
“The good thing is (the second quarter) is now behind us,” said Scott in an interview with CNBC. “We have accomplished quite a bit since the events of May 9.”
