Kessler Topaz Meltzer & Check, LLP Reminds Rocket Companies, Inc. Shareholders of Securities Fraud Class Action Lawsuit
RADNOR, Pa., July 21, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP reminds investors that a class action lawsuit has been filed against Rocket Companies, Inc for securities fraud in the United States District Court for the Eastern District of Michigan . (NYSE: RKT) (“Rocket”) on behalf of those who have purchased or acquired Class A common stock of Rocket between February 25, 2021 and May 5, 2021, including (the “Class Period”).
Deadline Reminder: Investors who have bought or acquired Rocket Class A common stock during the class period, by 08/30/2021 at the latestto be appointed as the group’s lead plaintiff. For more information or information on how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; per email to email@example.com; or click 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, 2021 when Rocket released a press release announcing its first quarter results and outlook for the second quarter. Rocket reported that in the second quarter of 2021, it was well on track to hit loan volume in a range of just $ 82.5 billion and $ 87.5 billion and sales margins in a range of just 2.65 % to 2.95%.
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 by 08/30/2021 at the latest, 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 want to 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 and has collected billions of dollars on behalf of institutional and private investors from the US and around 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.
Radnor, PA 19087
(844) 887-9500 (toll free)