Shareholder Investigation of GreenSky, Inc.

GreenSky, Inc. (GSKY) Accused of Depleting Company Assets Ahead of IPO

According to the complaint, prior to the IPO company insiders caused GreenSky, Inc. (GSKY) to enter into a series of special cash distribution agreements, which resulted in the distribution of over $581 million. Company insiders also caused Greensky to enter into an agreement that provides for the distribution of 85% of the tax savings the company realizes as a result of the reorganization transactions that preceded the IPO, which was estimated at $928 million.

GreenSky held its IPO on May 29, 2018, generating over $1 billion in gross proceeds, based on a misleading Registration Statement. The misinformation came to light when GreenSky began reporting dismal financial results less than three months later on August 7, 2018, citing a merchant business mix shift from solar panel merchants to merchants in the elective healthcare industry. Consequently, GreenSky was subject to an increased risk that its earnings growth would suffer and its adjusted EBITDA would decline in a high interest rate environment. GreenSky again reported disappointing results and lowered its guidance on November 6, 2018, revealing the company's adjusted EBITDA represented a 46% sequential decline and a 35% year-over-year decline as compared to the company's fourth quarter 2017 results. On this news, GreenSky's Class A shares fell to $9.28 per share on November 6, 2018, nearly 60% below the company's IPO price.

GreenSky, Inc. (GSKY) Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.

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