NEW YORK, June 24, 2021--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Eastern District of Michigan on behalf of investors that purchased Home Point Capital, Inc. (NASDAQ: HMPT) American Depositary Shares ("ADSs") pursuant and/or traceable to the Company’s initial public offering conducted on or about January 29, 2021 (the "IPO" or "Offering"). Investors have until August 20, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
Home Point Capital operates as a residential mortgage originator and service provider.
On January 29, 2021, Home Point Capital launched its 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. Net proceeds of the offering were approximately $88 million.
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%, closing at $7.70 per share.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Home Point's aggressive expansion of its broker partners would dramatically increase Home Point's expenses; (2) 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; (3) accordingly, Home Point had overstated its business and financial prospects; and (4) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you purchased Home Point Capital ADSs pursuant and/or traceable to the IPO and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210623005970/en/