NEW YORK, June 23, 2021 (GLOBE NEWSWIRE) -- Abraham, Fruchter & Twersky LLP announces that a class action lawsuit has been filed on behalf of investors who purchased Home Point Capital Inc. (“Home Point Capital” or the “Company”) (NASDAQ:HMPT) common stock in connection with the Company’s January 29, 2021, initial public offering (“IPO”) of 7,250,000 shares of Home Point Capital’s common stock for $13.00 per share or total proceeds of $88,123,750 received by the selling stockholders.
The complaint alleges that Home Point Capital’s offering documents violated the Securities Act of 1933 by failing to disclose that the Company’s aggressive expansion of its broker partners would dramatically increase Home Point Capital’s expenses; at the same time that the mortgage industry was anticipating industry-wide decreased gain-on-sale margins as a result of rising interest rates in 2021. On May 6, 2021, Home Point Capital reported revenue of $324.2 million for the fiscal quarter, missing consensus estimates by $41.72 million and causing Home Point Capital’s stock price to fall nearly 18%.
If you would like to discuss this class action lawsuit or obtain more information about your rights, please contact Abraham, Fruchter & Twersky LLP by e-mailing Jack G. Fruchter (JFruchter@aftlaw.com) or Sean M. Handron-O’Brien (SHandronobrien@aftlaw.com). You may also call (212) 279-5050.
Abraham, Fruchter & Twersky LLP is a law firm based in New York and maintaining an office in California. The firm’s attorneys have extensive experience litigating on behalf of shareholders and consumers in class action litigations involving corporate misconduct and has been ranked as a leading plaintiffs’ securities litigation firm in the 2020 survey by ISS Securities Class Action Services. Please visit www.aftlaw.com for more information.