NEW YORK, September 16, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against LoanDepot, Inc. (âLoanDepotâ or the âCompanyâ) (NYSE: LDI) and certain of its officers. The class action, filed in United States District Court of the Central District of California, and registered as 21-cv-01513, is in the name of an extended class consisting of all persons and entities other than the Defendants who have purchased or otherwise acquired LoanDepot in accordance with or traceable to the Registration Statement and the Prospectus of the Company (together, the âOffer Documentsâ) issued within the framework of the Company February 16, 2021 initial public offering (the âIPOâ or âOfferâ), seeking to exercise remedies under Sections 11 and 15 of the Securities Act of 1933 (the âSecurities Actâ).
If you are a shareholder who purchased LoanDepot securities during the Extended Class Period, you have up to November 8, 2021 ask the court to appoint you as the principal plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby To [emailÂ protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
LoanDepot is an independent retail mortgage lender providing residential loans, refinancing loans and personal loan products nationwide.
The complaint alleges that the offering documents were negligently prepared and failed to disclose material adverse facts. Specifically, the Defendants failed to disclose to investors: (1) that the Company’s refinancing operations had already declined significantly at the time of the IPO due to industry overcapacity and increased competition ; (2) that the profit margins on the sale of the Company had already considerably diminished at the time of the IPO; (3) that as a result, the revenues and growth of the Company would be adversely affected; (4) that the Company had already been forced to embark on a major expenditure reduction plan due to the significantly lower growth and the refinancing arrangements that the Company was experiencing; (5) that as a result of the foregoing, the positive statements of the Defendants regarding the activities, operations and prospects of the Company were substantially misleading and / or lacked reasonable basis; and (6) that the business, prospects and growth capacity of the Company had been materially compromised at the time of the IPO due to unfavorable industry, sales and earnings trends.
Through August 17, 2021, LoanDepot’s stock fell to $ 8.07 per share, a drop of more than 42% from the IPO price of $ 14 per share, having fallen in response to information reflecting materialization of material risks misrepresented and omitted in the offering documents as alleged in the complaint.
The Pomerantz firm, with offices in new York, Chicago, Los Angeles, and Paris is recognized as one of the leading firms in the areas of corporate law, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz was a pioneer in the field of class actions in securities. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext 7980
SOURCE Pomerantz LLP