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LDI.US

id: 896

loanDepot (LDI) IPO Finance Issues $3.5M Settlement

The settlement funds have been distributed to claimants.

$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

Disbursed

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

loanDepot (LDI) IPO Finance Issues $3.5M Settlement

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