WESTLAKE VILLAGE, CALIFORNIA – (BUSINESS WIRE) – Velocity Financial, Inc. (NYSE: VEL) (“Velocity” or the “Company”), a leading provider of small-scale investor loans, announced today that a motion to dismiss the company’s class action has been filed. The board of directors at the time of the company’s IPO, the former majority shareholder and the subscribers to the IPO were approved by the presiding judge (the “Dismissal Resolution”).
Chris Farrar, President and CEO stated, “We are delighted that the judge on the case agreed that the lawsuit was unfounded and granted our motion to dismiss. Velocity takes its disclosure obligations seriously and will continue to be transparent to investors. ”
As noted in the company’s SEC filings, the company, some of its directors at the time of going public, its former majority shareholder, and its IPO subscribers were named as defendants in a class action lawsuit filed in the Central District of California, Title Edward A. Berg v Velocity Financial, Inc. et al., Civil Claim No. 2: 20-cv-06780-RGK-PLA, filed July 29, 2020. The dismissal decision was issued on January 25, 2021.
The company and its directors were represented on this matter by the law firm Simpson Thacher & Bartlett LLP.
About Velocity Financial, Inc.
Headquartered in Westlake Village, California, Velocity is a vertically integrated real estate finance company that raises and manages investor loans backed by 1-4 residential units and small commercial properties. Velocity lends nationwide through an extensive network of independent mortgage brokers that has been built and refined over 15 years.