Repairing a Reputation After Borrowing Scandal

Lending Club Cuts One in Eight Jobs as It Seeks to Draw Line Under Scandal
– Financial Times
The Financial Times quoted Manatt’s Brian Korn, chair of the firm’s digital finance and marketplace lending practice, for an article about fintech company Lending Club’s attempts to restructure. The restructure comes after Lending Club’s founder abruptly departed the company amidst accusations he had borrowed money to boost the company’s loan volume.
Korn suggested that bringing in an outsider, rather than promoting executive Scott Sanborn to chief executive, may have been a more effective way to ease investors’ fears. “He seems like a very capable executive,” he said of Sanborn, but added: “By essentially picking Renaud’s handpicked successor, there is a possibility that it could be more of the status quo.”

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