Rocket Companies, Inc. Securities Litigation

Filing Deadline: August 30, 2021

If you purchased a significant amount of shares of Rocket Companies Inc. Class A Common Stock (NYSE: RKT), you have certain options. Investors should contact us before August 30, 2021.

 

Lawsuit Overview

Defendant:Rocket Companies Inc. Class A Common Stock
Date Filed:June 29th, 2021
Sector:Finance
Industry:Finance: Consumer Services
Class Start Date:February 25th, 2021
Class End Date:May 5th, 2021

The Complaint alleges that, throughout the Class Period, Defendants made false and misleading statements and failed to disclose that: (i) Rocket Companies’ gain on sale margins were contracting at the highest rate in two years as a result of increased competition among mortgage lenders, an unfavorable shift toward the lower margin Partner Network operating segment and compression in the price spread between the primary and secondary mortgage markets; (ii) Rocket Companies was engaged in a price war and battle for market share with its primary competitors in the wholesale market, which was further compressing margins in Rocket Companies’ Partner Network operating segment; (iii) the adverse trends identified above were accelerating and, as a result, Rocket Companies’ gain on sale margins were on track to plummet at least 140 basis points in the first six months of 2021; (iv) as a result, the favorable market conditions that had preceded the Class Period and allowed Rocket Companies to achieve historically high gain on sale margins had vanished as Rocket Companies’ gain on sale margins had returned to levels not seen since the first quarter of 2019; (v) rather than remaining elevated due to surging demand, Rocket Companies’ company-wide gain-on-sale margins had fallen materially below pre-pandemic averages; and (vi) consequently, Defendants’ positive statements about Rocket Companies’ business operations and prospects were materially misleading and/or lacked a reasonable basis.

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First Identified Complaint

Zoya Qaiyum, et al. v. Rocket Companies, Inc., et al.

Date Filed:June 29th, 2021
Class Period Start:February 25th, 2021
Class Period End:May 5th, 2021
First Identified Complaint Filings
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