Mortgage Lender Rocket Hit With Investor Action In Mich.

By Emilie Ruscoe (July 1, 2021, 6:35 PM EDT) -- Online mortgage lender Rocket Companies Inc. has been hit with a proposed class action in Detroit federal court accusing the company of misleading investors about a key metric of the company's financial performance on the heels of its August 2020 initial public offering.

In a complaint filed Tuesday, investor Zoya Qaiyum accused the company of failing to disclose that a range of factors had impacted the company's so-called gain on sale margins, which Qaiyum said investors use to measure Rocket's profitability.

Qaiyum claims that in May, when the company announced that that metric had a 239 basis point decline year-over-year, trading...

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