SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of loanDepot, Inc. (NYSE: LDI) shares pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with loanDepot’s February 16, 2021 initial public offering (“IPO”) have until November 8, 2021 to seek appointment as lead plaintiff. The loanDepot class action lawsuit charges loanDepot, certain of its officers and directors, and the underwriters of the IPO with violations of the Securities Act of 1933. The loanDepot class action lawsuit (Lako v. loanDepot, Inc., No. 21-cv-01449) was filed in the Central District of California and is pending before Judge Josephine L. Staton.
If you wish to serve as lead plaintiff of the loanDepot class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the loanDepot class action lawsuit must be filed with the court no later than November 8, 2021.
CASE ALLEGATIONS: In its IPO, loanDepot sold 3,850,000 shares of its Class A common stock to the public at a price of $14.00 per share for total proceeds of approximately $54 million, net of underwriting discounts and commissions. Nearly 40% of the shares sold in the IPO were by loanDepot’s founder, chairman, and CEO, defendant Anthony Hsieh, and loanDepot’s early partner and investor, Parthenon Capital.
The loanDepot class action lawsuit alleges that loanDepot’s Registration Statement was materially false and misleading and omitted to state that: (i) loanDepot’s refinance originations had already declined substantially at the time of the IPO due to industry over-capacity and increased competition; (ii) loanDepot’s gain-on-sale margins had already declined substantially at the time of the IPO; (iii) as a result, loanDepot’s revenue and growth would be negatively impacted; and (iv) consequently, defendants’ positive statements about loanDepot’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The loanDepot class action lawsuit further alleges that when loanDepot announced disappointing second quarter 2021 results on August 3, 2021, Anthony Hsieh admitted that everything about loanDepot’s business is “highly predictable” and thus that loanDepot had perfect visibility at the time of the IPO as to where its business was and was going. By August 17, 2021, loanDepot’s stock price fell to $8.07 per share, a more than 42% decline from the IPO price, having plummeted in response to information reflecting the materialization of significant risks misrepresented and omitted from the Registration Statement.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased loanDepot shares pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the loanDepot class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts 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 loanDepot class action lawsuit. An investor’s ability to share in any potential future recovery of the loanDepot class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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