NOTICE OF PENDING CLASS ACTION
HELLUM v. PROSPER MARKETPLACE, INC. and others, Case No. CGC 08-482329
IF YOU PURCHASED LOAN NOTES ON PROSPER.COM DURING THE PERIOD OF JANUARY 1, 2006 TO OCTOBER 14, 2008, YOU MAY BE A CLASS MEMBER IN A CLASS ACTION
YOU SHOULD READ THIS NOTICE CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS AND OBLIGATIONS.
This notice is to inform you that on February 29, 2012, the court in the Hellum v. Prosper Marketplace, Inc. lawsuit granted Plaintiffs’ motion to certify a class as follows:
All persons who purchased loan notes through Prosper’s loan underwriting and sales marketplace at www.prosper.com during the period from January 1, 2006 through October 14, 2008, excluding Defendants, their employees, and members of Defendants’ families (the “Class”).
This notice is only a summary. For more information, please read the Long Notice or visit the Important Documents Section of this website.
What is this case about? This lawsuit claims that Prosper offered and sold unqualified and unregistered securities, in violation ofCalifornia and federal securities laws. Plaintiffs also claim that Prosper acted as an unlicensed broker/dealer inCalifornia. Plaintiffs seek rescission of the loan notes, rescissory damages, damages, and attorneys’ fees and expenses.
Defendants deny the allegations made by Plaintiffs. Defendants assert that the loan notes were not securities and were therefore not required to be registered or qualified for sale underCaliforniaor federal law. Defendants also assert that Prosper was not required to register as a broker/dealer. Defendants are seeking dismissal of this lawsuit and deny that the Class is entitled to any monetary recovery or other relief. Defendants are seeking a trial of this matter as soon as possible.
Who is a Class member? The Class of plaintiffs is defined above.
Who represents you? The Court appointed The Rosen Law Firm, P.A. and Green & Noblin, P.C. to represent the Class. They may be contacted through the administrator at 866-274-4004. You may hire your own attorney but you will have to pay that attorney.
What are your options? You may choose to do nothing. By doing nothing, you remain a member of the Class and may be entitled to get money or benefits if Plaintiffs win at trial or settle the case. Additionally, you give up any rights to sue Prosper or any of the other defendants based on the issues raised in this lawsuit, and you will be bound by all Court decisions and judgments, whether favorable to the Class or not. You may intervene in the lawsuit. Any member of the Class who does not request exclusion may, if the member so desires, enter an appearance through counsel. You may request to be excluded from the lawsuit (“opt out”). If you opt out, you will not be a Class member and you cannot obtain benefits from this lawsuit, if there are any, but you keep any rights you may have to file your own lawsuit based on the same issues. To opt out, you must send an email on or before August 14, 2012, or a letter postmarked on or before August 14, 2012 to:
Your email or letter must include your name, address, and, in substance, the following statement, “I request to be excluded from the Hellum v. Prosper Marketplace, Inc. lawsuit, Case No. CGC 08-482329.”
For more information, please read the Long Notice or visit the Important Documents Section of this website, or call 1 866-274-4004.