Online lender and tech startup Social Finance (SoFi) made recent news when its chief executive officer, Mike Cagney, stepped down following a lawsuit regarding claims of sexual harassment. According to a news article published by The New York Times, Tom Hutton, executive chairman of Social Finance’s board of directors, will serve as interim CEO.
“The business is strong, stable and well-positioned,” Hutton said in a statement. “For now, there is no more important work than paving the way for future success by building a transparent, respectful and accountable culture.”
A former employee filed a lawsuit against SoFi in August citing sexual misconduct, including allegations which highlighted the company’s culture as a toxic work environment in which managers ignored sexual harassment claims. Those accusations have reportedly come from more than 30 current and former employees, according to The New York Times article, many of whom reported explicit text messages sent by Mike Cagney to employees and inappropriate workplace conduct perpetrated by the former CEO, among other complaints.
In addition, there are rumors circulating that improperly funded SoFi loan products were sold to investors.
Here are the numbers:
$4 billion | Valuation of SoFi as of Sept. 15
$3.1 billion | Value of loans funded by SoFi in Q2 2017
$1.9 billion | Total venture capital funding raised by investors like Baseline Ventures, Discovery Capital and SoftBank
$134 million | SoFi revenue generated in Q2 2017
350,000 | Number of borrowers who have used SoFi’s lending services, totaling more than $20 billion in loans
$75,000 | Settlement SoFi reached with a former executive assistant, as detailed by The New York Times
30 | Number of employees who have leveled accusations against SoFi’s former CEO