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SAN FRANCISCO, July 12, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Rocket Companies, Inc. (NYSE: RKT) investors with significant losses to submit your losses now. A securities class action has been filed and certain investors may have valuable claims.
Rocket Companies, Inc. (RKT) Securities Class Action:
Since going public in August 2020, Rocket and senior management have repeatedly emphasized record loan originations and gain-on-sale margins and have downplayed competitive threats to the company’s business.
According to the lawsuit, defendants made false and misleading statements and/or failed to disclose (1) Rocket faced increasing competition that resulted in contracting gain-on-sale margins, (2) Rocket was engaged in a price war with its primary competitors in the wholesale market, further compressing margins, and (3) these adverse trends were accelerating such that Rocket’s gain-on-sale margins were on track to plummet at least 140 basis points for the first six months of 2021.
Investors began to learn the truth, according to the complaint, on May 5, 2021 when Rocket and senior management announced the company’s financial results for the first quarter ended March 31, 2021. Among other things, defendants slashed gain-on-sale margin guidance for Q2 2021 to 2.65 – 2.95% and blamed pressure on loan pricing and a product mix shift to Rocket’s lower margin Partner Network segment.
This news sent the price of Rocket shares crashing lower. Two days before these revelations, on March 29, 2021, Rocket’s founder, former CEO and Chairman (Daniel Gilbert) sold 20.2 million Rocket shares for gross proceeds of nearly $500 million.
“We’re focused on investors’ losses and proving defendants knew Rocket’s business was increasingly pressured by competitive and interest rate factors when they downplayed these matters,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Rocket investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Rocket should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email RKT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895