SAN DIEGO, Sept. 07, 2021 (GLOBE NEWSWIRE) -- Bottini & Bottini, Inc., a law firm specializing in securities class action litigation, announces that it has filed a class action lawsuit on behalf of all persons who purchased the common stock of LOAN DEPOT, Inc. (NYSE: “LDI”) pursuant to the Registration Statement issued in connection with the Company’s February 16, 2021 initial public offering (“IPO”). The lawsuit—pending in the United States District Court for the Central District of California —seeks to recover damages under the federal securities laws for those who purchased LOAN DEPOT stock.
Investors who have purchased Loan Depot stock at any time between February 16, 2021 and September 3, 2021 and incurred losses are urged to contact the firm immediately at fab@bottinilaw.com or (858) 914-2001. Bottini & Bottini is representing clients on a contingency fee basis. You may obtain additional information concerning the action on our website, www.bottinilaw.com.
If you purchased shares of LOAN DEPOT Holdings, Inc. and would like to assist with the case as a lead plaintiff, you must, no later than November 6, 2021, request that the Court appoint you a lead plaintiff of the proposed class.
The lawsuit charges that Loan Depot violated the Securities Act of 1933 because the Registration Statement failed to disclose that: (1) the Company’s loan 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; and (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.
Subsequent to the IPO, Loan Depot’s stock declined immediately, declining below $8 per share less than six months after the IPO -- a decline of over 42% from the IPO price.
If you wish to join the litigation or discuss your interests in this lawsuit, contact Frank A. Bottini of Bottini & Bottini at (858) 914-2001 or fab@bottinilaw.com.
Contact:
Bottini & Bottini, Inc.
Frank A. Bottini, Esq.
Email: fab@bottinilaw.com
Tel: (858) 914-2001
SOURCE: Bottini & Bottini, Inc.
