The lawsuit charges that Loan Depot violated the Securities Act of 1933 because the Registration Statement failed to disclose that: (1) the Company’s loan originations had already declined substantially at the time of the IPO due to industry over-capacity and increased competition; (2) that the Company’s gain-on-sale margins had already declined substantially at the time of the IPO; (3) that, as a result, the Company’s revenue and growth would be negatively impacted; (4) that the Company had already been forced to embark on a significant expense reduction plan due to the significantly lower growth and refinance originations that the Company was experiencing; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. Subsequent to the IPO, Loan Depot’s stock declined immediately, declining below $8 per share less than six months after the IPO — a decline of over 42% from the IPO price.
The alleged class includes : All persons and entities who purchased or acquired shares of loanDepot, Inc. pursuant or traceable to the Company’s Registration Statement and Prospectus issued in connection with the Company’s February 16, 2021 initial public offering.[IPO]
For More information as well as to join this case please contact Atara Twersky, Esq. at [email protected] or [email protected]. Atara is Principal at Twersky Law Group and Of counsel at AF&T law firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries click here and to listen to Atara’s podcast with notable guests in the Pension fund Industry listen to Pension and Investments Podcast, on all matters related to your investment portfolio and more. For more information on Atara and her legal work connected to shareholder protection click here