On Deck Capital, Inc.
Robbins Arroyo LLP Is Investigating the Officers and Directors of On Deck Capital, Inc. (ONDK) on Behalf of Shareholders
Robbins Arroyo LLP is investigating whether certain officers and directors of On Deck Capital, Inc. (NYSE: ONDK) breached their fiduciary duties to shareholders. On Deck Capital provides financing products to small businesses in the United States.
On Deck Capital Suffers Significant Decline in Stock Value
On December 16, 2014, On Deck priced its initial public offering (“IPO”) at $20.00 and sold 11.5 million shares of stock, raising $230 million. Six months after its IPO, On Deck common stock dropped below $12 per share, a decline of over 40% from the IPO price and a nearly 60% decline from its almost $29 per share high. The significant drop in share price came after news reports of rising default rates in On Deck’s loan portfolios and declining value of its business model. The company is now reportedly losing tens of millions of dollars through defaults on its loans, likely due to the company’s reliance on stated income and data from third-party sources, which may contain inaccuracies.
Further, an analyst report released in March 2015 detailed concerns with On Deck’s business model, including inherent risks surrounding an untested credit model, growing competition, uncertainty with regard to interest rates, and anticipated regulatory threats, all of which create a risky environment for On Deck investors. On Deck’s unsustainable business model, according to the report, could ultimately lead to slower growth and higher expenses.
In light of this news, Robbins Arroyo LLP’s investigation focuses on whether On Deck and/or its officers misled shareholders by issuing false statements regarding the company’s business prospects.
On Deck Capital Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.