GreenSky’s Securities Litigation

Cravath, Swaine & Moore successfully represented GreenSky in the class action.

On April 22, 2020, the Commercial Division of the New York State Supreme Court dismissed a shareholder lawsuit against GreenSky, Inc., a financial technology company, and certain officers and directors.

The putative securities class action alleged that GreenSky’s offering documents, issued in connection with its initial public offering, contained false and misleading statements relating to its shift away from solar merchants and the resulting impact on transaction fee rates and revenue, in violation of the federal securities laws.

The court ruled that GreenSky did not violate its duty to disclose because the Company disclosed its shift away from solar merchants to lower-fee merchants, and that the omission of more specific disclosures about the fees paid by solar merchants was not material, as reasonable investors would have inferred from the offering documents that the new merchants would pay lower fees.

GreenSky, Inc. (NASDAQ: GSKY) is a financial technology company, based in Atlanta, Georgia, and incorporated in Delaware. GreenSky operates an online platform that enables creditors to process loan applications at the point of sale. More than 10,000 businesses are active users of GreenSky’s platform.

The Cravath team was led by partners Karin A. DeMasi (Picture) and Lauren Roberta Kennedy and included associates David H. Korn and Sophia M. Suarez.

Involved fees earner: Karin DeMasi – Cravath Swaine & Moore; Lauren Roberta Kennedy – Cravath Swaine & Moore; David Korn – Cravath Swaine & Moore; Sophia Suarez – Cravath Swaine & Moore;

Law Firms: Cravath Swaine & Moore;

Clients: GreenSky;

Author: Ambrogio Visconti