Case Name: GreenSky
Class Period: 5/24/2018 -- 11/12/2018
Settlement Fund: $27,500,000
Claim Filing Deadline: 10/9/2021
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.
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“I could go on and on, but bottom line, the fees being charged are much less than what I was spending in house to file and this is just one less thing I have to spend time trying to figure out how to complete on a consistent basis. Dealing with the CCC staff has been a very positive thing.”
“We were spending countless hours on class action claims before we signed on with CCC in January. Matt Murray and their technical team ensured our data transmission was seamless and secure. We found everyone at CCC to be professional, courteous, and accommodating.”
“Signing with CCC has made a huge difference. Before, it was horrible. We had to print thousands of pieces of paper, invite clients to come in and sit down with us to show them where to find the transactions, how to input them into the Proof of Claim forms. Now it's simple. It’s very nice to be able to tell our client, “You can shred that Proof of Claim form because CCC has it taken care of.”
Registered Investment Advisor
“Your client reporting portal and customer service is the reason we chose Chicago Clearing. I send the data on an annual basis to CCC and they take it from there. My clients are protected (if there is a class action, it is getting filed), the Bank is protected (we are meeting our fiduciary obligation by filing the claims)."