HAGENS BERMAN, NATIONAL LAWYERS, encourages Rocket
SAN FRANCISCO, June 30, 2021 (GLOBE NEWSWIRE) – Hagens Berman urges Rocket Companies, Inc. (NYSE: RKT) investors with large losses submit your losses now. A class action lawsuit in securities has been filed and some investors may have interesting claims.
Class period: February 25, 2021 – May 5, 2021
Lead Applicant Deadline: August 30, 2021
Contact a lawyer now: [email protected]
Rocket Companies, Inc. (RKT) class action:
Since its IPO in August 2020, Rocket and senior management have repeatedly highlighted record loan origination and profit margins on sale and have downplayed competitive threats to the company’s business.
According to the lawsuit, the defendants made false and misleading statements and / or failed to disclose (1) Rocket faced increasing competition which resulted in squeezing profit margins on the sale, (2) Rocket was engaged in a price war with its main competitors in the wholesale market, further compressing margins, and (3) these unfavorable trends were accelerating such that Rocket’s profit margins on sale were on track to drop by at least 140 points base for the first six months of 2021.
Investors began learning 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, the defendants cut back on sales profit margin forecast for the second quarter of 2021 at 2.65 – 2.95% and blamed the pressure on loan prices and a product line shift to Rocket’s lower margin partner network segment .
This news caused Rocket’s stock price to drop. Two days before these revelations, on March 29, 2021, the founder, former CEO and chairman of Rocket (Daniel Gilbert) sold 20.2 million Rocket shares for gross proceeds of nearly $ 500 million.
“We focus on investor losses and prove that the defendants knew that Rocket’s business was increasingly pressured by competitive factors and interest rates when they downplayed these issues,” Reed said. Kathrein, Hagens Berman’s partner leading the investigation.
If you are a Rocket investor and have significant losses, or have knowledge that may assist the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Those with non-public information regarding Rocket should consider their options to assist with the investigation or take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30% of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected]
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities across the country and over eighty lawyers. The firm represents investors, whistleblowers, workers and consumers in complex litigation. To learn more about the company and its successes, visit hbsslaw.com. For the latest news, visit our writing or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895