May 09--Renaud Laplanche, chief executive and chairman of online lender Lending Club, has resigned, the company said Monday.
Laplanche's resignation came after an internal review found that the San Francisco lender sold $22 million in loans to an investor, despite the fact that those loans didn't meet the investor's criteria. The firm did not specify how the loans failed to meet the investor's standards, but noted that credit quality was not the issue.
"While the financial impact of this $22 million in loan sales was minor, a violation of the company's business practices along with a lack of full disclosure during the review was unacceptable to the board," Lending Club Executive Chairman Hans Morris said in a statement.
Company President Scott Sanborn will take on the additional role of acting CEO, Lending Club said.
Laplanche founded Lending Club in 2006. Shares of LendingClub Corp. plunged $1.78, or 25.1%, to $5.32 in early trading on Wall Street.
