Mortgage Maker LoanDepot Sued Over Post-IPO Stock Fall
By Katryna Perera (September 14, 2021, 10:00 PM EDT) -- Mortgage originator loanDepot was hit with a class action in California federal court on Tuesday by an investor who claims the company's registration statement for its initial public offering was negligently prepared and contained misleading information leading to an artificially inflated stock price and subsequent drop damaging shareholders.
According to the complaint, loanDepot sold 3.85 million shares of its Class A common stock to the public for $14 per share for total proceeds of approximately $54 million in February during its IPO.
By August, the company's stock had fallen 42% from the IPO price to $8.07 per share, plummeting in response...
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