NEW YORK, July 10, 2021 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Rocket Companies, Inc. («Rocket» or the «Company») (NYSE: RKT). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether Rocket and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 5, 2021, Rocket issued a press release announcing its first quarter 2021 results and second quarter 2021 outlook. Rocket reported that it was on track to achieve closed loan volume within a range of only $82.5 billion and $87.5 billion and gain on sale margins within a range of only 2.65% to 2.95% for the second quarter of 2021. At the mid-point, this gain on sale margin estimate equated to a 239 basis point decline year-over-year and a 94 basis point decline sequentially, which represented the Company’s lowest quarterly gain on sale margin in two years. Discussing the results on a conference call, Rocket’s Chief Financial Officer and Treasurer Julie R. Booth revealed that the sharp decline in quarterly gain on sale margin was being caused by three factors: (i) pressure on loan pricing; (ii) a product mix shift to Rocket’s lower margin Partner Network segment; and (iii) a compression in price spreads between the primary and secondary mortgage markets. Booth also admitted that certain of these trends began «at the end of Q1″—i.e., shortly before the sale of nearly $500 million worth of Rocket stock by Company insiders.
On this news, Rocket’s stock price fell $3.79 per share, or 16.62%, to close at $19.01 per share on May 6, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP