In This Article:
New York, New York--(Newsfile Corp. - August 8, 2021) - The following statement is being issued by Levi & Korsinsky, LLP:
To: All persons or entities who purchased or otherwise acquired securities of Rocket Companies, Inc. ("Rocket Companies") (NYSE: RKT) between February 25, 2021 and May 5, 2021. You are hereby notified that a securities class action lawsuit has been commenced in the United States District Court for the Eastern District of Michigan. To get more information go to:
https://www.zlk.com/pslra-1/rocket-companies-inc-loss-submission-form?prid=18327&wire=5
or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500. There is no cost or obligation to you.
Rocket Companies, Inc. NEWS - RKT NEWS
CASE DETAILS: According to the filed complaint: (a) 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; (b) 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; (c) 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; (d) as a result of the above, the favorable market conditions that had preceded the Class Period and allowed Rocket to achieve historically high gain on sale margins had vanished as the Company's gain on sale margins had returned to levels not seen since the first quarter of 2019; (e) rather than remaining elevated due to surging demand, Rocket's Company-wide gain-on-sale margins had fallen materially below recent historical averages; and (f) as a result of the foregoing, defendants' positive statements about the Company's business operations and prospects were materially misleading and/or lacked a reasonable basis.
WHAT THIS MEANS TO SHAREHOLDERS: If you suffered a loss in Rocket Companies, you have until August 30, 2021 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
NO COST TO YOU: If you purchased Rocket Companies securities between February 25, 2021 and May 5, 2021, you may be entitled to compensation without payment of any out-of-pocket costs or fees.