The law firm of Kirby McInerney LLP announces 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): securities (a) 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”); and/or b) between February 13, 2021 and September 3, 2021, inclusive (the “Class Period”). Investors have until November 6, 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 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 lawsuit alleges 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 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 email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.