RK&O partner Jahan Sharifi recently spoke with American Banker regarding announcements made at the Lending Club annual meeting on June 28. The marketplace lender reported both mass layoffs and reduced growth projections in response to the fallout of the scandal involving founder and former CEO Renaud Laplanche. Lending Club also disclosed that Laplanche and three of his family members borrowed more than $770,000 on the Lending Club platform in December 2009 in order to boost reported loan volume.
"The fact that there were loans made to the CEO and his family members really feeds into the narrative that some people in the company have been trying to massage numbers," said Mr. Sharifi. "He is gone, so to a certain extent they have addressed that risk."
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