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SHAREHOLDER ALERT: Wolf Haldenstein Adler Freeman & Herz LLP Announces That a Class Action Lawsuit Has Been Filed Against On Deck Capital, Inc. in the United States District Court for the Southern District of New York -- ONDK

20:00 EDT 6 Aug 2015 | Globe Newswire

NEW YORK, Aug. 07, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased or otherwise acquired On Deck Capital, Inc. (“On Deck” or the “Company”) (NYSE:ONDK) securities pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with the Company’s December 17, 2014 initial public offering (“IPO”). Shareholders of On Deck with losses greater than $100,000 are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.

The Complaint alleges that defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the true rate of default for the Company’s loan portfolio was steadily increasing; (2) the true value of the Company’s loan portfolio was in material decline; and (3) as a result of the foregoing, On Deck’s public statements were materially false and misleading at all relevant times.

On December 15, 2014, On Deck filed its amended Registration Statement for the IPO, which became effective on December 17, 2014.  Pursuant to the IPO, 11,500,000 shares of On Deck common stock were sold at $20.00 per share.

On February 11, 2015, less than two months after the IPO, SeekingAlpha.com published an article entitled On Deck Capital: Bad Loans, Bad Interest Rates, Bad Business Plan.  The article described, in part, how the Company’s Registration Statement significantly understated the default rate for the Company’s loan portfolio.

On March 18, 2015, Compass Point Research & Trading, LLC (Compass Point) published a research report (the Compass Point Report) that 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 created a risky environment for On Deck investors.  On Deck’s unsustainable business model, according to the Compass Point Report, could ultimately lead to slower growth and higher expenses.  Accordingly, Compass Point assigned a Sell rating to On Deck stock.

By July 1, 2015, just six months after the IPO, On Deck common stock had dropped to a low of $11.15 per share, a decline of over 40% from the IPO price and of over 60% from its almost $29 per share high on December 18, 2014.  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.

On Deck’s stock dropped August 4, 2015, after the Company announced weak guidance for the third quarter of 2015 and the fiscal year 2015. The stock closed at $10.47, down $2.91 for the day, a 22% decline.

If you purchased On Deck Capital, Inc. securities during the period from December 16, 2014 through August 3, 2015, inclusive, you may, no later than October 5, 2015, request that the Court appoint you lead plaintiff of the proposed class.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.  All e-mail correspondence should make reference to the “On Deck Investigation.”

Attorney Advertising. Prior results do not guarantee or predict a similar outcome.

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP 
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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