According to the Complaint, loanDepot, Inc. is an independent retail mortgage lender that provides residential loans, refinance loans, and personal loan products nationwide.
This is a securities class action on behalf of all persons and entities who purchased or acquired shares of loanDepot, Inc. pursuant or traceable to the Company’s Registration Statement and Prospectus (together, the “Offering Documents”) issued in connection with the Company’s February 16, 2021 initial public offering (“IPO”).
The Complaint alleges that the Registration Statement and Prospectus incorporated therein (collectively, the “Registration Statement”) issued in connection with the IPO contained materially incorrect or misleading statements and/or omitted material information. Specifically, the Complaint alleges 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; and (4) 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.
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