RKT INVESTOR ALERT: Shareholder Class Action Lawsuit Filed

·3 min read

BOSTON, MA / ACCESSWIRE / July 26, 2021 / The Thornton Law Firm alerts investors that a class action lawsuit has been filed on behalf of investors of Rocket Companies, Inc. (NYSE:RKT). The case is currently in the lead plaintiff stage. Investors who purchased Rocket Class A common stock between February 25, 2021 and May 5, 2021 may contact the Thornton Law Firm's investor protection team by visiting www.tenlaw.com/cases/Rocket for more information. Investors may also email investors@tenlaw.com or call 617-531-3917.

FOR MORE INFORMATION: www.tenlaw.com/cases/Rocket

The case alleges that Rocket Companies and its senior executives made misleading statements to investors and failed to disclose that: (i) Rocket's 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 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's Partner Network operating segment; (iii) the adverse trends identified above were accelerating and, as a result, Rocket's 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 to achieve historically high gain on sale margins had vanished as Rocket's gain on sale margins had returned to levels not seen since the first quarter of 2019; and (v) rather than remaining elevated due to surging demand, Rocket's company-wide gain-on-sale margins had fallen materially below pre-pandemic averages.

Interested Rocket investors have until August 30, 2021 to retain counsel and apply to be a lead plaintiff if they are interested to do so. A lead plaintiff acts on behalf of all other investor class members in managing the class action. Investors do not need to be a lead plaintiff in order to be a class member. If investors choose to take no action, they can remain an absent class member. The class has not yet been certified. Until certification occurs, investors are not represented by an attorney. Thornton Law Firm is not currently representing a plaintiff who filed a complaint but is investigating the case on behalf of investors interested in being a lead plaintiff.

FOR MORE INFORMATION: www.tenlaw.com/cases/Rocket

Thornton Law Firm's securities attorneys are highly experienced in representing investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of investors. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

CONTACT:

Thornton Law Firm LLP
1 Lincoln Street
State Street Financial Center
Boston, MA 02111
www.tenlaw.com/cases/Rocket

SOURCE: Thornton Law Firm LLP



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https://www.accesswire.com/657017/RKT-INVESTOR-ALERT-Shareholder-Class-Action-Lawsuit-Filed

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