NEW YORK, May 4, 2017 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Home Capital Group Inc. ("Home Capital" or the "Company") (OTCMKTS: HMCBF). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Home Capital and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On February 10, 2017, post-market, Home Capital disclosed that the Ontario Securities Commission ("OSC") had reached the preliminary conclusion that Home Capital failed to meet its continuous disclosure obligations in 2014 and 2015, and that the OSC had served the Company with an enforcement notice related to its 2015 disclosure that information on certain loan applications had been falsified. On this news, Home Capital's share price fell $1.49, or $6.57, to close at $21.16 on February 13, 2017.
On March 27, 2017, post-market, Home Capital announced the departure of the Company's Chief Executive Officer ("CEO") Martin Reid. On this news, Home Capital's share price fell $1.39, or 6.75%, to close at $19.29 on March 28, 2017.
On April 19, 2017, post-market, the OSC alleged that Chief Financial Officer ("CFO") Robert Morton and two former CEOs of Home Capital, Gerald Soloway and Martin Reid, had unlawfully misled shareholders of the Company during their respective tenures. On this news, Home Capital's share price fell $3.57, or 21.54%, to close at $13.00 on April 20, 2017.
On April 24, 2017, Home Capital announced that Gerald Soloway, the Company's founder, was resigning from Home Capital's board, and that CFO Robert Morton would be reassigned to a new role within the Company. On this news, Home Capital's share price fell $1.10, or 7.74%, to close at $13.10 on April 24, 2017.
On April 26, 2017, Home Capital disclosed that the Company was seeking a $2 billion line of credit to backstop a significant decline in deposits at its Home Trust subsidiary. On this news, Home Capital's share price fell $8.68, or 66.25%, to close at $4.42 on April 26, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP