SHAREHOLDER ALERT: Law Firm Pomerantz Reminds Shareholders Who Have Suffered Losses On Their Investment In LoanDepot, Inc. Of Class Action And Upcoming Deadline
New York, New York – (Newsfile Corp. – September 21, 2021) – Pomerantz LLP announces that a class action lawsuit has been filed against LoanDepot, Inc. (“loanDepot” or the “Company”) (NYSE: LDI) and certain of its officers. The class action suit, filed in the United States District Court for the Central District of California, and registered as 21-cv-01513, is in the name of a larger group consisting of all persons and entities other than the defendants who have purchased or otherwise acquired LoanDepot in accordance with or traceable to the Company’s registration statement and prospectus (together, the “Offer Documents”) issued in connection with the Company’s initial public offering on February 16, 2021 ( the “IPO” or “the“ Offer ”), seeking remedies under Sections 11 and 15 of the Securities Act of 1933 (the“ Securities Act ”).
If you are a shareholder who purchased LoanDepot securities during the extended recourse period, you have until November 8, 2021 to ask the court to appoint you as the principal plaintiff of the recourse. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email 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 due to the foregoing, the positive statements of the Defendants regarding the activities, operations and prospects of the Company were materially misleading and / or lacked reasonable basis; and (6) that the business, prospects and growth capacity of the Company had been significantly compromised at the time of the IPO due to unfavorable trends in the industry, sales and earnings.
As of August 17, 2021, LoanDepot shares have fallen to $ 8.07 per share, down more than 42% from the IPO price of $ 14 per share, after falling in response to reports reflecting the materialization of material risks distorted and omitted in the offer documents as alleged in the complaint.
Pomerantz, 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 Actions Bar, Pomerantz was a pioneer in the field of securities class actions. 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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/97241