San Diego, CA -- (SBWire) -- 10/08/2021 --An investigation on behalf of current long-term investors in shares of Rocket Companies, Inc. (NYSE: RKT) concerning potential breaches of fiduciary duties by certain directors and officers of Rocket Companies, Inc. was announced.
Investors who are current long term investors in Rocket Companies, Inc. (NYSE: RKT) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSE: RKT stocks follows a lawsuit filed against Rocket Companies, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE: RKT stocks, concerns whether certain Rocket Companies, Inc. directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Eastern District of Michigan the plaintiff alleges that, the defendants made false and misleading statements and failed to disclose that Rocket Companies' 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, that Rocket Companies 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 Companies' Partner Network operating segment, that the adverse trends identified above were accelerating and, as a result, Rocket Companies' gain on sale margins were on track to plummet at least 140 basis points in the first six months of 2021, that as a result, the favorable market conditions that had preceded the Class Period and allowed Rocket Companies to achieve historically high gain on sale margins had vanished as Rocket Companies' gain on sale margins had returned to levels not seen since the first quarter of 2019, that rather than remaining elevated due to surging demand, Rocket Companies' company-wide gain-on-sale margins had fallen materially below pre-pandemic averages, and that consequently, defendants' positive statements about Rocket Companies' business operations and prospects were materially misleading and/or lacked a reasonable basis.
Those who purchased shares of Rocket Companies, Inc. (NYSE: RKT) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Rocket Companies, Inc. (NYSE:RKT) Long Term Investor Alert: Investigation of Potential Wrongdoing
An investigation on behalf of current long term investors in Rocket Companies, Inc. (NYSE:RKT) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSE: RKT stockholders should contact the Shareholders Foundation.