Pomerantz Appointed Lead Counsel in loanDepot Securities Litigation

On May 2, 2022, U.S. District Judge Josephine L. Staton of the Central District of California appointed Pomerantz LLP as Lead Counsel on behalf of Arthur Gary LaFrano, the Lead Plaintiff, and the class, in Eljon Lako v. Loandepot, Inc. et al, 8:21-cv-01449-JLS-JDE (C.D. Cal.). This securities action alleges that loanDepot, Inc. ("loanDepot" or the "Company") failed to disclose declines in its loan operation business that negatively impacted its revenue and growth.

loanDepot is an independent retail mortgage lender that provides residential loans, refinance loans, and personal loan products nationwide.

Allegations against loanDepot include that the Offering Documents for its February 2021 initial public offering (“IPO”) failed to disclose that: (i) the Company’s refinance originations had already declined substantially at the time of the IPO due to industry over-capacity and increased competition; (ii) the loanDepot’s gain-on-sale margins had already declined substantially at the time of the IPO; and (iii) as a result, the Company’s revenue and growth would be negatively impacted.

By August 17, 2021, loanDepot’s stock had declined 42% from its IPO price after it disclosed disappointing Q2 2021 results and provided significantly lower guidance for its business.