The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Home Point Capital Inc. (NASDAQ: HMPT) who purchased pursuant and/or traceable to the Company’s January 29, 2021 initial public offering. The action, which was filed in the United States District Court for the Eastern District of Michigan, alleges that the Company violated federal securities laws.
In particular, the Home Point lawsuit alleges that (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 decreased gain-on-sale margins as a result of rising interest rates in 2021 and Home Point would be subject to the same competitive pressures; (iii) accordingly, the Company had overstated its business and financial prospects; and (iv) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.
Shareholders have until August 20, 2021 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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