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NEW YORK, Oct. 25, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired loanDepot, Inc. (“loanDepot” or the “Company”) (NYSE: LDI) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s February 16, 2021 initial public offering (“IPO” or the Offering”). Investors have until November 8, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
loanDepot is an independent retail mortgage lender that provides residential loans, refinance loans, and personal loan products nationwide.
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.
On August 3, 2021, loanDepot announced disappointing Q2 2021 results. In so doing, the founder, Chairman, and CEO admitted that everything about loanDepot’s business is “highly predictable” and thus loanDepot had visibility at the time of the IPO as to where its business was and was going. By August 17, 2021, loanDepot’s stock had declined to $8.07 per share, a more than 42% decline from the IPO price.
The lawsuit alleges that the Registration Statement had 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 or otherwise acquired loanDepot securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.