Lending Club (NYSE:LC) has been pounded by bad news this month. Following the announcement that founder and CEO Renaud Laplanche had resigned for alleged improprieties at the online lender, the bad news avalanche began. One day it was a subpoena, the next it was a lawsuit. Every piece of news was followed up by a drubbing in the media. Today, Lending Club finally caught a break.
It was revealed today that Tianqiao Chen, the co-founder of Shanda Interactive Entertainment, had scooped up an 11.7% stake in Lending Club via Shanda Group. Chen happens to be a billionaire and one of the wealthiest individuals in China today.
Shanda Group, independent of the gaming operation, is a private investment company based in Singapore. Founded in 1999, the company and its funds are controlled by the founders Chen and Chrissy Luo.
Lending Club also revealed in a Reuters report that Jeffries has been enlisted to help the beleaguered firm shore things up and find new investors.
The double dose of positive news pushed Lending Club shares 8% higher on the NYSE.
Additionally, Crowdfund Insider is hearing that Shanda is not alone in its interest in taking advantage of the battered online lending sector. As we understand it, Asian money views the recent collapse in marketplace lending prospects as a significant opportunity for savvy investors. Perhaps the Lending Club news is the first of more announcements.
