Lending Club's CEO resigns after internal probe

[May 09, 2016]  (Reuters) - Online lending platform operator Lending Club Corp <LC.N> said its Chief Executive and Chairman Renaud Laplanche has resigned following an internal review, which revealed a violation of the company's business practices.

Shares of the company were down 15.6 percent at $5.99 in premarket trading.

The review revealed that loans extended to a single investor did not conform to instructions, with certain employees being aware that the sale did not meet the investor's requirements, the company said on Monday.

Scott Sanborn, the company's president, will become acting CEO, while director Hans Morris will assume the newly created role of executive chairman.

The company also reported a profit of $4.1 million, or 1 cent per share for the first quarter ended March 31, compared with a loss of $6.4 million, or 2 cents per share, a year earlier.

(Reporting By Sudarshan Varadhan in Bengaluru; Editing by Shounak Dasgupta)

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