NEW YORK, Aug. 12, 2020 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Velocity Financial, Inc. f/k/a Velocity Financial, LLC ("Velocity" or "the Company") (NYSE: VEL) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Velocity common stock pursuant and/or traceable to the Registration Statement and Prospectus (the "Offering Materials") issued in connection with Velocity's January 2020 initial public offering ("IPO"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/vel.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.
The Complaint alleges that defendants failed to disclose that, at the time of the IPO, the Company's non-performing loans had dramatically increased in size from the figures provided in the offering materials, as measured by both the amount of unpaid principal balance and as a percentage of the Company's overall loan portfolio. In addition, defendants failed to provide any information to investors regarding the potential impact of the novel coronavirus on Velocity's business and operations, despite the fact that the international spread of the virus had already been confirmed at the time of the IPO. The failure to disclose the substantial and growing proportion of the Company's loans that were non-performing and/or on non-accrual status as of the IPO rendered the statements contained in the Offering Materials regarding the quality of the Company's loan portfolio and underwriting practices materially misleading.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/vel or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Velocity you have until September 28, 2020 to request that the Court appoint you as co-lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.