PR Newswire
NEW YORK, July 13, 2021 /PRNewswire/ — Moore Kuehn, PLLC, a securities law firm located on Wall Street, is investigating potential claims involving directors and officers regarding possible breaches of fiduciary duties related to whether insiders caused their companies to make false and/or misleading statements and/or failed to disclose, among other things, that:
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Rocket Companies, Inc. (NYSE:
RKT)
Rocket Companies, Inc. (“Rocket”) had growing competition culminating in contracting gain-on-sale margins, Rocket was engaged in a price war with its foremost competitors in the wholesale market, further compressing margins, and these adverse trends were accelerating such that Rocket’s gain-on-sale margins were on track to fall at least 140 basis points for the first half of 2021.
Investors began to learn the truth, around May 5, 2021, when Rocket and senior management announced disappointing financial results for the first quarter ended March 31, 2021. Rocket cut gain-on-sale margin guidance for Q2 2021 to 2.65 – 2.95% and blamed pressure on loan pricing and a product mix shift to Rocket’s lower margin Partner Network segment.
This news sent the price of Rocket shares lower. Two days before these revelations, on March 29, 2021, Rocket’s founder, former CEO and Chairman, Daniel Gilbert, sold 20.2 million Rocket shares for gross proceeds of nearly $500 million.
Before the downward forecasts announced on May 5, 2021, Rocket issued a February 25, 2021 press release titled “Rocket Companies Experiences Explosive Growth,” which announced Rocket’s financial results for the fourth quarter and full year of 2020. Rocket reported closed loan origination volume of $107.2 billion and gain on sale margin of 4.41% for the fourth quarter. Rocket emphasized that it had “[i]ncreased gain on sale margin by 100 basis points year-over-year” during the quarter and “[i]ncreased gain on sale margin by 127 basis points year-over-year to 4.46%” for the full-year period.
If you own Rocket or RKT please contact Fletcher Moore, Esq. by email at [email protected] or telephone at (212) 709-8245. There is no cost to you. Moore Kuehn is a New York-based law firm with attorneys representing investors and consumers.
Please visit http://www.moorekuehn.com/practice/new-york-shareholder-derivative-litigation/
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Moore Kuehn, PLLC
Fletcher Moore, Esq.
30 Wall Street, 8th Floor
New York, New York 10005
[email protected]
(212) 709-8245
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SOURCE Moore Kuehn, PLLC
