Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against Rocket Companies, Inc. (RKT)
RADNOR, Pa., July 8, 2021 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP is reminding investors that a class action lawsuit for securities fraud has been filed against Rocket Companies, Inc. (NYSE: RKT) (“Rocket”) or acquired common stock of Rocket on behalf of the buyers -Class A between February 25, 2021 and May 5, 2021, including (the “Class Period”).
KTMC logo (PRNewsfoto / Kessler Topaz Meltzer & Check, LLP)
Deadline Reminder: Investors who have bought or acquired Rocket Class A common shares during the Class Period can, at the latest, August 30, 2021to be appointed as the group’s lead plaintiff. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by email to firstname.lastname@example.org; or click on https://www.ktmc.com/rocket-companies-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=rocket
Rocket is an online mortgage lender who operates the online Rocket Mortgage platform, which enables customers to apply for and service mortgages via the internet or Rocket’s proprietary mobile app. Rocket operates two main segments: (1) the direct-to-consumer segment; and (2) the partner network segment.
During the class action period, Rocket continued to promote its business, downplaying the impact of competition on Rocket’s bottom line on sales margins.
The truth was revealed on May 5, 2021when Rocket issued a press release announcing its first quarter results and outlook for the second quarter. Rocket reported that it was well on the way to getting a completed loan volume within a range of only. to reach $ 82.5 billion and $ 87.5 billion and profit on sales margins in a range of just 2.65% to 2.95% for the second quarter of 2021.
The lawsuit alleges that during the class action period, defendants made false and / or misleading information and / or failed to disclose: (1) Rocket’s profit on sales margins was an unfavorable shift in the direction of increased competition among mortgage lenders the Partner Network operating segment with lower margins and a narrowing of the price spread between the primary and secondary mortgage markets; (2) Rocket was embroiled in a price war and battle for market share with its major competitors in the wholesale market, which further depressed margins in the operating segment of Rocket’s partner network; (3) the adverse trends accelerated and, as a result, Rocket’s profit margins were on track to decline by at least 140 basis points in the first six months of 2021; (4) As a result of the foregoing, the favorable market conditions that preceded the class action period and allowed Rocket to generate historically high profit on sales margins had disappeared as Rocket’s profit on sales margins returned to levels it has since the first quarter of the year was no longer achieved in 2019; (5) Rocket’s profit on sales margins had fallen well below recent historical averages, rather than staying high due to rising demand; and (6) as a result of the foregoing, Defendants’ positive statements about Rocket’s business and prospects have been materially misleading and / or unfounded.
The story goes on
Rocket investors can do so at the latest August 30, 2021, attempt to be appointed as lead class representative by Kessler Topaz Meltzer & Check, LLP, or other legal counsel, or they may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in the conduct of the dispute. To be appointed as a lead plaintiff, the court must determine that the class plaintiff’s claim is typical of the claims of other class plaintiffs and that the class plaintiff is adequately representing the class action. Your ability to participate in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of state and federal laws. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, recovering billions of dollars on behalf of institutional and private investors The United States and all over the world. The firm represents investors, consumers and whistleblowers (individuals who report fraudulent practices to the government and participate in recovery of government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topas Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
Radnor, PA 19087
(844) 887-9500 (toll free)
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