Shares of LendingClub Corp. tumbled 5.4% in afternoon trade Tuesday, after the online consumer lending platform disclosed in regulatory filings that a former major shareholder had sold off its stake and that it has postponed its annual shareholder meeting. U.K.-based investment management company Baillie Gifford & Co. owned 34.6 million shares, or a 9.1% stake in LendingClub as of March 31, but currently owns zero common shares, according to filings. The company said in a separate filing that, "given the developments of the last few weeks, the company is not yet in a position to provide stockholders a complete report on the state of the company;" therefore, it was adjourning the annual meeting, originally scheduled for 2 p.m. Eastern on Tuesday, until June 28. The company said last month that it was being investigated by the Justice Department following the forced resignation of its chief executive and founder, after failing to report loan-sale errors. On May 23, a filing showed that Singapore-based investment company Shanda Group acquired an 11.7% stake in LendingClub. The stock has tumbled 59% year to date, while the S&P 500 has gained 3.6%.
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