Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of loanDepot, Inc. (“loanDepot” or the “Company”). The class action is on behalf of shareholders who purchased loanDepot common stock pursuant or traceable to February 16, 2021, initial public stock offering (the “IPO”). If you wish to serve as lead plaintiff in this class action, you must move the Court no later than November 8, 2021.
The lawsuit alleges that loanDepot’s registration statement contained statements that were materially inaccurate, misleading, and incomplete because they failed to disclose that: (1) the Company’s refinance originations had already declined substantially at the time of the IPO due to industry overcapacity and increased competition; (2) the Company’s gain-on-sale margins had already declined substantially at the time of the IPO; (3) as a result, the Company’s revenue and growth would be negatively impacted; and (4) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and lacked a reasonable basis.
A lead plaintiff will act on behalf of all other class members in directing the LoanDepot class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor’s ability to share any potential future recovery of the loanDepot class action lawsuit is not dependent upon serving as lead plaintiff.
If you suffered a substantial loss and are interested in learning more about being a lead plaintiff, please contact Jim Baker (firstname.lastname@example.org) by email or phone at 619-814-4471. If emailing, please include a phone number.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson Fistel, LLP
Jim Baker, 619-814-4471