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This is yet another young company that I've heard of which is being driven by a desire for quick growth by trying to short-circuit the natural growth of their p

This is yet another young company that I've heard of which is being driven by a desire for quick growth by trying to short-circuit the natural growth of their product. LendingClub: misrepresenting financial standing of borrowers. Theranos: their new test is as accurate and more efficient than existing tests. Zenefits: dodged proper training of employees. All of these seem to be inline with spurring growth. Is the expectation of quick return and/or increased valuation (no down rounds) driving companies to make these poor decisions?

hkmurakami 10y ago
Lending Club: Not only that, they also misrepresented the terms of the contract and legal clauses present in them by falsifying the date of loan forward to one that was after they made changes to their language (I believe Jeffries was the counter party). Blatant securities fraud. edit: since I seem to be the target of downvoting by people presumably with a stake in LC, here are some sources. "he falsified dates on $3 million of loans that were bought by Jefferies" http://www.bloomberg.com/news/articles/2016-05-10/jefferies-said-to-have-pressed-lendingclub-to-improve-disclosure http://www.bloomberg.com/news/articles/2016-05-10/jefferies-... http://ftalphaville.ft.com/2016/05/10/2161309/the-legal-tweak-that-led-to-disaster-for-lending-club/?Authorised=false&_i_location=http%3A%2F%2Fftalphaville.ft.com%2F2016%2F05%2F10%2F2161309%2Fthe-legal-tweak-that-led-to-disaster-for-lending-club%2F&_i_referer=&classification=conditional_registered&iab=barrier-app http://ftalphaville.ft.com/2016/05/10/2161309/the-legal-twea... http://www.wsj.com/articles/inside-the-final-days-of-lendingclub-ceo-renaud-laplanche-1463419379 http://www.wsj.com/articles/inside-the-final-days-of-lending...
2muchcoffeeman 10y ago
'It's easier to ask for forgiveness than permission' seems to be a feature of American startups.
- kevindong 10y ago
  I mean, that's basically Uber's business model.
  - paulcole 10y ago
    AirBnB as well.
    - dsfyu404ed 10y ago
      toss in manifest destiny while you're at it.

hkmurakami 10y ago

Lending Club: Not only that, they also misrepresented the terms of the contract and legal clauses present in them by falsifying the date of loan forward to one that was after they made changes to their language (I believe Jeffries was the counter party). Blatant securities fraud. edit: since I seem to be the target of downvoting by people presumably with a stake in LC, here are some sources. "he falsified dates on $3 million of loans that were bought by Jefferies" http://www.bloomberg.com/news/articles/2016-05-10/jefferies-said-to-have-pressed-lendingclub-to-improve-disclosure http://www.bloomberg.com/news/articles/2016-05-10/jefferies-... http://ftalphaville.ft.com/2016/05/10/2161309/the-legal-tweak-that-led-to-disaster-for-lending-club/?Authorised=false&_i_location=http%3A%2F%2Fftalphaville.ft.com%2F2016%2F05%2F10%2F2161309%2Fthe-legal-tweak-that-led-to-disaster-for-lending-club%2F&_i_referer=&classification=conditional_registered&iab=barrier-app http://ftalphaville.ft.com/2016/05/10/2161309/the-legal-twea... http://www.wsj.com/articles/inside-the-final-days-of-lendingclub-ceo-renaud-laplanche-1463419379 http://www.wsj.com/articles/inside-the-final-days-of-lending...

2muchcoffeeman 10y ago

'It's easier to ask for forgiveness than permission' seems to be a feature of American startups.

kevindong 10y ago
I mean, that's basically Uber's business model.
- paulcole 10y ago
  AirBnB as well.
  - dsfyu404ed 10y ago
    toss in manifest destiny while you're at it.