The Law Offices of Frank R. Cruz reminds investors of the upcoming November 8, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased loanDepot, Inc. (“loanDepot” or the “Company”) (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”).
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In February 2021, loanDepot completed its initial public offering (“IPO”), selling 3.85 million shares of Class A common stock at $14.00 per share.
By August 17, 2021, loanDepot’s stock price fell 42% below the IPO price after the Company disclosed disappointing second quarter 2021 financial results and provided significantly lower guidance for its business.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) loanDepot’s refinance originations had already declined substantially at the time of the IPO due to industry over-capacity and increased competition; (2) loanDepot’s gain-on-sale margins had already declined substantially at the time of the IPO; (3) as a result, loanDepot’s revenue and growth would be negatively impacted; and (4) 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 at all relevant times.
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If you purchased or otherwise acquired loanDepot shares pursuant and/or traceable to the IPO, you may move the Court no later than November 8, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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