SHAREHOLDER ALERT: Robbins LLP Announces that Home Point Capital Inc. (HMPT) is Being Sued for Misleading Shareholders
SAN DIEGO & ANN ARBOR, Mich.--(BUSINESS WIRE)--Jun 24, 2021--
Shareholder rights law firm Robbins LLP announces that a class action has been filed on behalf of all purchasers of Home Point Capital (NASDAQ: HMPT) who acquired Home Point securities pursuant to the Company’s January 2021 initial public offering (“IPO”). The complaint asserts claims under the Securities Act of 1933. Home Point and its subsidiaries operates as a residential mortgage originator and service provider.
If you suffered a loss due to Home Point Capital Inc.’s misconduct, click here.
Home Point Capital Inc. (HMPT) Made Misstatements in its IPO Offering Documents
According to the complaint, Home Point conducted its IPO on January 29, 2021, selling its stock at $13.00 per share for proceeds over $88 million. However, the offering documents were negligently prepared, contained untrue statements of material fact, and were misleading. Specifically, the offering documents failed to disclose: (i) Home Point’s aggressive expansion of its broker partners would dramatically increase the Company’s expenses; (ii) the mortgage industry was anticipating industry-wide decrease gain-on-sale margins as a result of rising interest rates in 2021 and Home Point would be subject to the same competitive pressure; and (iii) as such, the Company had overstated its business and financial prospects.
On May 6, 2021, Home Point issued a press release announcing its financial results for the first quarter of 2021. The Company reported revenue of $324.2 million, missing consensus estimates by $41.72 million. On this news, Home Point’s stock price fell over 17%, to close at $7.72 per share on May 6, 2021. The stock is now trading below $6.50.
If you purchased shares of Home Point Capital Inc. (HMPT) pursuant to the Company’s IPO, you have until August 20, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against Home Point Capital Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com:https://www.businesswire.com/news/home/20210624005945/en/
CONTACT: Lauren Levi
5040 Shoreham Place
San Diego, CA 92122
KEYWORD: CALIFORNIA MICHIGAN UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Robbins LLP
Copyright Business Wire 2021.
PUB: 06/24/2021 02:35 PM/DISC: 06/24/2021 02:36 PM