Shares of LendingClub dropped more than 8.5 percent Tuesday as the company deals with a U.S. government subpoena.
The company said Monday it had received a Justice Department subpoena last week, following Renaud Laplanche's resignation from his posts as chairman and CEO. Laplanche's departure came as LendingClub acknowledged it conducted an internal review of its business practices.
"We are not surprised to receive a Department of Justice subpoena in light of our public disclosures and the focus of the Department on financial services. The Company is fully cooperating and has engaged in a productive and orderly dialogue through counsel. While the investigation is still in its early stages, the Company is pleased with the open and positive interactions that have occurred to date," LendingClub said in a statement Tuesday.
The company's leadership said the review of loans discovered that staff knowingly sold $22 million in loans in March and April that did not meet the buyer's requirements. It came after an unnamed staffer made a change executives described as "minor" to internal loan paperwork, the company said.
LendingClub told investors in a Monday letter that an outside auditor had not found additional problems with its 673,000 outstanding loans, beyond the documentation issues identified in 361 loans last week.