NEW YORK, Oct. 25, 2021 /PRNewswire/ -- 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, filed in the United States District Court for the Central District of California, and docketed under 21-cv-01513, is on behalf of an expanded class consisting of all persons and entities other than Defendants that purchased or otherwise acquired loanDepot 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 (the "IPO" or the "Offering"), seeking to pursue 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 Expanded Class Period, you have until November 8, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. 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 who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
loanDepot is an independent retail mortgage lender that provides residential loans, refinance loans, and personal loan products nationwide.
The complaint alleges that, the Offering Documents was negligently prepared and omitted to disclose material adverse facts. Specifically, 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; (4) that the Company had already been forced to embark on a significant expense reduction plan due to the significantly lower growth and refinance originations that the Company was experiencing; (5) 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; and (6) that the Company's business, prospects and ability to achieve growth had been materially impaired by the time of the IPO as a result of adverse industry, sales and earnings trends.
By August 17, 2021, loanDepot's stock fell to $8.07 per share, a more than 42% decline from the IPO price of $14 per share, having plummeted in response to information reflecting the materialization of significant risks misrepresented and omitted from the Offering Documents as alleged in the complaint.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris 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