SAN DIEGO – (COMMERCIAL THREAD) – Law firm in shareholder law Robbins LLP announces that a class action lawsuit has been filed on behalf of all persons and entities who have purchased or otherwise acquired LoanDepot, Inc. (NYSE: LDI) in accordance with the company’s registration statement and prospectus issued in connection with the company’s initial public offering of February 2021. (“IPO”). The complaint seeks relief under the Securities Act of 1933. LoanDepot is an independent retail mortgage lender providing residential loans, refinancing loans and personal loan products nationwide.
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LoanDepot, Inc. (LDI) has significantly distorted its business outlook in connection with its IPO
According to the complaint, the registration statement for the company’s IPO stated that the company’s “innovative technology” had enabled it to achieve significantly increased income and profitability and rapid growth in loan origination. The prospectus stated that LoanDepot had significantly increased its market share and was well positioned to protect and grow that market share through its proprietary “platform and technology”, which would have given LoanDepot a “significant financial advantage”.
However, these statements were false and misleading. Specifically, the defendants failed to disclose to investors that: (i) the Company’s refinancing operations had already declined significantly at the time of the IPO due to industry overcapacity and increased competition ; (ii) the profit margins on the sale of the Company had already considerably diminished at the time of the IPO; and (iii) as a result, the revenues and growth of the Company would be adversely affected.
On August 3, 2021, LoanDepot reported disappointing second quarter 2021 results. In doing so, the Founder, Chairman and CEO admitted that everything related to LoanDepot’s business was “highly predictable” and, therefore, LoanDepot had visibility at the time of the IPO on where its business was and was going. As of August 17, 2021, LoanDepot shares had fallen to $ 8.07 per share, down more than 42% from the IPO price.
If you purchased shares of LoanDepot, Inc. (LDI) securities as part of the Company’s IPO in February 2021, you have until November 8, 2021 to ask the court to appoint you as the lead plaintiff of the group.
All representation is based on contingency fees. Shareholders pay no fees or expenses.
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