A shareholder class action lawsuit has been filed against loanDepot, Inc. (NYSE:LDI) on behalf of investors who purchased shares of the Company’s common stock pursuant and/or traceable to the Company’s February 16, 2021 initial public offering (“IPO”).
The complaint alleges that, the Offering Documents was negligently prepared and omitted to disclose material adverse facts. Specifically, Defendants failed to disclose to investors: (1) that the Company’s refinance 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; (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; and (6) that the Company’s business, prospects and ability to achieve growth had been materially impaired by the time of the IPO as a result of adverse industry, sales and earnings trends.
By August 17, 2021, loanDepot’s stock fell to $8.07 per share, a more than 42% decline from the IPO price of $14 per share, having plummeted in response to information reflecting the materialization of significant risks misrepresented and omitted from the Offering Documents as alleged in the complaint.
IMPORTANT DEADLINE: Investors who purchased loanDepot’s securities during the Class Period may, no later than November 8, 2021, seek to be appointed as a lead plaintiff representative in the action.
LoanDepot investors who suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about the opportunity to actively participate in the action as a lead plaintiff representative.