NEW YORK (TheStreet) -- Shares of LendingClub (LC - Get Report) are soaring higher by 5.47% to $4.63 at the start of trading on Wednesday, as ousted company CEO Renaud Laplanche is said to have been in discussions with private equity firms and banks regarding financing for a possible buyout of the company.

Laplanche left the online lender in May following an internal investigation that found the company had falsified documents when selling an investor $22 million of loans, Reuters reports.

LendingClub stock lost 40% of its value in less than a month following the scandal.

Laplanche left the company on May 9 and is reported to have approached firms about financing a deal to take the company private, sources told Reuters. The talks are in the early stages and may not result in a deal.

The Department of Justice is looking into the circumstances surrounding Laplanche exiting the company.

LendingClub went public in late 2014 with a market value of $9 billion, it is now worth $1.68 billion, Reuters added.

Separately, TheStreet Ratings has set a "sell" rating and a score of D- on LendingClub stock. This is driven by several weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.

The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: LC