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LDI.US
id: 896

loanDepot (LDI) IPO Finance Issues $3.5M Settlement

$3,500,000
Cash Settlement
C.D. California
Court
8:21-cv-01449
Case number
02/18/2021
Class period Start
09/22/2021
Class period End
04/24/2024
Claim deadline

loanDepot agreed to pay $3.5M to investors to resolve the claims over misleading about the IPO.

Case Details:

loanDepot sold 3.85M shares at $14 each in its IPO, raking in about $54M. Notably, nearly 40% of these shares were sold by CEO Anthony Hsieh and investor Parthenon Capital.

Supposedly, loanDepot's Registration Statement hid a big drop in refinance and profit margins.

When loanDepot's Q2 2021 results was published on August 3, 2021, $LDI dropped over 42% by August 17, 2021, exposing undisclosed risks.

loanDepot has now decided to resolve all the allegations and pay a $3.5M settlement.

Case Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.37
Filing date
09/03/2021
Plaintiffs
Eljon Lako
Attorneys
Pomerantz LLP
Defendants
Anthony Hsieh, Patrick Flanagan, Nicole Carrillo, Andrew C. Dodson, John C. Dorman, Brian P. Golson, Dawn Lepore
Judge
Josephine L Staton
Settlement agreement date
2023-07-26
Court hearing date
04/19/2024
Exclusion deadline
04/12/2024
Class wide damages
$23,446,500
Trades matching type
FIFO
Disbursement date
06/19/2026

Frequently Asked Questions

Who is eligible for this settlement?

All persons or entities who purchased or acquired shares of loanDepot’s Class A common stock between March 16, 2021 and September 22, 2021, inclusive, and were damaged thereby.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.37 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.48 per share.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.