Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Eastern District of Michigan on behalf of purchasers of Home Point Capital Inc. (NASDAQ:HMPT) common stock pursuant and/or traceable to Home Point Capital’s January 29, 2021 initial public offering (“IPO”). The case is captioned Windemuth v. Home Point Capital Inc., No. 21-cv-11457, and is assigned to Judge Laurie J. Michelson. The Home Point Capital class action lawsuit charges Home Point Capital and certain of its officers and directors with violations of the Securities Act of 1933.
If you wish to serve as lead plaintiff of the Home Point Capital class action lawsuit or have questions concerning your rights regarding the Home Point Capital class action lawsuit, please visit our website by clicking here or contact J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Home Point Capital class action lawsuit must be filed with the court no later than August 20, 2021.
CASE ALLEGATIONS: Home Point Capital operates as a residential mortgage originator and service provider. From 2018 to 2020, Home Point Capital undertook an aggressive expansion of its broker partner network, increasing the network from 1,623 as of December 31, 2018 to nearly 5,000 as of September 30, 2020, which represents an annualized growth rate of 88%. On January 29, 2021, Home Point Capital conducted the IPO, issuing 7.25 million shares of Home Point Capital’s common stock to the public at the offering price of $13.00 per share for proceeds of $88,123,750 to the selling stockholders before expenses and after applicable underwriting discounts and commissions.
The Home Point Capital class action lawsuit alleges that Home Point Capital’s offering documents made false and/or misleading statements and/or failed to disclose that: (i) Home Point Capital’s aggressive expansion of its broker partners would dramatically increase Home Point Capital’s expenses; (ii) the mortgage industry was anticipating industry-wide decreased gain-on-sale margins as a result of rising interest rates in 2021 and Home Point Capital would be subject to the same competitive pressures; (iii) accordingly, Home Point Capital had overstated its business and financial prospects; and (iv) as a result, Home Point Capital’s offering documents were materially false and/or misleading and failed to state information required to be stated therein.
On May 6, 2021, Home Point Capital issued a press release announcing Home Point Capital’s financial results for the first quarter of 2021. Among other results, Home Point Capital reported revenue of $324.2 million, missing consensus estimates by $41.72 million. On this news, Home Point Capital’s stock price fell nearly 18%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Home Point Capital common stock pursuant and/or traceable to Home Point Capital’s January 29, 2021 IPO to seek appointment as lead plaintiff in the Home Point Capital class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Home Point Capital class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Home Point Capital class action lawsuit. An investor’s ability to share in any potential future recovery of the Home Point Capital class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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