--- analyst: culpeper-research sector: thesis: fraud tags: - short
- analyst/culper-research - focus/security - potential/short - sector/the-court-ruled-to-certify-the-plaintiff-class - thesis/fraud ---
LendingTree #
We are short LendingTree, Inc. (“TREE”, “LendingTree”, “the Company”), a highly levered lead generator that we believe has failed to properly disclose two massive blows to its business that have now grown into existential risks. First, LendingTree is sitting on a time bomb of litigation exposing it to a minimum of $157 million up to $472 million in damages – almost the entirety of the Company’s current equity value. LendingTree has unsuccessfully fought this suit for the past 5 years, all the while never disclosing its existence to investors. We think the litigation has now grown into an existential risk. In August 2024, the court ruled to certify the Plaintiff class, which the Company itself told the court was a “death knell” for its defense, citing “astronomical” damages. Just 3 days ago, the judge set a November 3, 2025 trial date. Despite these developments, LendingTree CEO Doug Lebda told a totally different story on the Company’s Q3 conference call, characterizing the nearly half-a-billion dollar exposure as mere “normal course” proceedings
--- Last updated: 2026-05-07 by Steve