GreenSky, Inc.

Case Details

Class Period:
May 21, 2018 – November 27, 2018
Date Filed:
November 27, 2018
Case Number:
1:18-cv-11071
Jurisdiction:
Southern District of New York

Case Summary

Plaintiff alleges that Defendants made false and misleading statements and omissions in the registration statement and prospectus for the Company's IPO (the "Offering Documents") and, in so doing, violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. At the time of the IPO, GreenSky was well underway in executing a strategy of swift expansion into the elective healthcare sector while simultaneously reducing its portfolio of solar panel merchants. This shift precipitated a significant decline in the Company's largest source of revenue: transaction fees. GreenSky charged its solar merchants high transaction fees but charged healthcare businesses substantially lower transaction fees. Defendants made false and misleading statements and omissions in the Offering Documents about the revenue effects of the change in the classes of merchants for whom it facilitated loans. When the truth was disclosed, GreenSky share prices dropped precipitously, and investors who made purchases pursuant or traceable to the IPO suffered harm.

Action Details

View Complaint (pdf)

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