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loanDepot, Inc.

(NYSE: LDI)

Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of loanDepot, Inc. ("loanDepot" or the "Company") on behalf of stockholders.  A class action complaint has been filed against loanDepot.  The claims arise from defendants' misrepresentations about three critical facets of loanDepot's business.  First, beginning in the fall of 2020, as the Company's IPO approached, the Company's CEO directed the creation of an initiative to systematically violate mandatory loan origination and underwriting requirements to close loans as quickly as possible and thus boost the Company's performance and capture additional market share.  Second, for several years the Company had improperly collected double daily interest from refinance borrowers, inflating the Company's interest income.  Third, the Registration Statement issued in connection with the Company's IPO misrepresented to investors that the Company's "gain on sale margins" -- a critical metric of the Company's performance and closely tracked by analysts -- could decline in the future.  The complaint alleges that defendants made misleading statements in the Registration Statement, which was negligently prepared, contained untrue statements of material fact, and omitted statements of material fact required to be stated therein or necessary to make the statements therein not misleading.  Among other things, the Registration Statement misleadingly failed to disclose "Project Alpha" and "Project Beta"; misrepresented the Company's compliance practices and failed to disclose its years-long improper collection of double interest payments from borrowers; and misled investors concerning the Company's rapidly declining gain on sale margins.

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Date of signing: 03/02/2024


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