In February 2021, loanDepot completed its initial public offering (“IPO”), selling 3.85 million shares of Class A common stock at $14.00 per share.
By August 17, 2021, loanDepot’s stock price fell 42% below the IPO price after the Company disclosed disappointing second quarter 2021 financial results and provided significantly lower guidance for its business.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) loanDepot’s refinance originations had already declined substantially at the time of the IPO due to industry over-capacity and increased competition; (2) loanDepot’s gain-on-sale margins had already declined substantially at the time of the IPO; (3) as a result, loanDepot’s revenue and growth would be negatively impacted; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased loanDepot securities during the Class Period, you may move the Court no later than November 8, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased loanDepot securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com