Shanda Group has acquired an 11.7% stake in the online lender Lending Club Corp. , according to a filing with the Securities and Exchange Commission. The news sent shares of Lending Club up 6.6% in early trade Monday. Shanda Group is a Singapore-based investment company, headed by Chinese national Tianqiao Chen. The filing was dated May 11, before the news on May 16 of a Justice Department investigation of the company, which had forced its chief executive and founder to resign a week earlier. Renaud Laplanche was ousted after the company’s board uncovered improper activity in its lending process. The news sent the stock down sharply, causing it to shed about $700 million in market value in a single day. The stock has fallen 77% in the last 12 months, while the S&P 500 has lost 3.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News