Blog


Deadline Is Soon for the $27.5 Million GreenSky Securities Settlement

GreenSky, a lender whose market spans solar to healthcare and beyond, settles securities suit



Case Name: GreenSky

Class Period: 5/24/2018 -- 11/12/2018        

Settlement Fund: $27,500,000         

Claim Filing Deadline: 10/9/2021

Symbol: GSKY

 

 

GreenSky, a financial services firm based in Atlanta Georgia, has settled a class action securities suit for $27.5 million. The deadline is right around the corner—October 9. Purchasers of Class A common stock traceable to the company's May 25, 2018 IPO or during the class period are eligible to participate.

 

Chicago Clearing Corporation (CCC) has been preparing claims in this litigation since the settlement notice first arrived in July. Call us today at 312-204-6970, and we’ll get started on a claim in this litigation—and in any other litigation affecting your portfolio or your clients’ portfolios.

 

About this case

 

What is GreenSky? Well, it depends on who you ask. In some of its promotional material they state that they “paperless solutions and financial services to businesses of all sizes,” which is cool-- CCC provides solutions too! Wikipedia claims that GreenSky “provides technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare and other purposes” which is more specific but trails off into vague. This question, “what is GreenSky and what does it do?” is in fact the basis of the plaintiff’s complaint—it was not clear, they claim, in the company’s offering documents.

 

The name GreenSky implies environmentally friendly energy technologies, which according to the class action complaint is how the company began:

 

“GreenSky has traditionally catered to home improvement and solar energy businesses. GreenSky charged its solar panel merchants substantially higher transaction fees relative to other merchants. GreenSky typically charged its solar panel merchants a 14% transaction fee, while charging other merchants a 7% transaction fee on average. GreenSky has begun to expand its reach in the elective healthcare market, in which it charges lower-than-average transaction fees. GreenSky has simultaneously begun phasing out of its relationships with solar panel merchants. The Offering Documents failed to disclose the substantial change in the composition of GreenSky’s merchant business mix and the resulting diminution in transaction-fee revenue.”

 

Plaintiffs alleged that the offering documents  and other statements were “false and misleading because [they] characterize[d] GreenSky’s fee revenue model as ‘strong’ and ‘recurring’ even as the Company was winding down its solar panel business and ramping up its activity in the elective healthcare market… Though the IPO took place [on May 28, 2018] after the strategic decision to move away from solar and focus on healthcare, the financial effects of that shift were not disclosed in the Offering Documents. On November 6, 2018 [after the company released its financial results], GreenSky’s stock price plummeted to $9.28 per share, sharply down from the IPO price of $23.00 per share and post-offering high of $26.77 per share.”

 

Defendants deny “each and all” of the allegations.

 

How CCC Can Help

 

CCC has tracked this litigation since the case was first filed in 2018. We track all litigations throughout the federal court system, post settlement information as soon as it appears, file timely and comprehensive claims, respond to every communication from the administrators, reconcile deficiencies and, when necessary, contest rejections, allocate funds in a manner that best serves you and your clients… and then do it again and again and again for every complaint filed, every settlement, and every distribution. Best of all, we present all of this information to you—thousands of cases, hundreds of complaints and settlements each year—on a smart, intuitive, and easy to use client portal.

 

Call us today at 312-204-6970, and discover how we are a smart solution for all your financial settlement recovery opportunities.


More News from the Class Action World



Case Name: Luckin ... Read More

Case Name: Stamps.com

Class Period: 5/3/... Read More

Case Name: Granite Construction

Settlement Fund: $129,000,000

Claim Filing Deadline: January 24, 2022

Cla... Read More

Plaintiff attorneys who specialize in securities class actions are currently investigating potential claims against the following firms: Honeywell International, Lockheed Martin, and Petrofac.Read More

Plaintiff attorneys who specialize in securities class actions are currently investigating potential claims against the following firms: Credit Suisse Group AG, Faraday Future Intelligent Electric, Novavax, and Organogenesis Holdings.

Below is a brief description of each inve... Read More

Case Name: Petrobras Fair Fund

Read More

 

Read More

Case Name: Mexican Government Bonds Antitrust Litigation

Settlement Fund: $20,700,000

(Settling defendants: ... Read More

Case Name: GreenSky

Read More