This stockholder derivative action is brought on behalf of loanDepot against certain current and former officers and members of the Company’s Board of Directors (the “Board”) for breaching their fiduciary duties to stockholders by, among other things, making and/or causing others to make materially false and misleading statements and omissions in connection with the February 16, 2021 initial public offering of the Company’s common stock (the “IPO”) and in following SEC disclosures.
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 overcapacity 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; and (4) 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.
To learn more about this action, you are encouraged to contact Joshua Grabar at [email protected] or call 267-507-6085.
