The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the Central District of California on behalf of shareholders of Velocity Financial, Inc. who purchased shares pursuant and/or traceable to the Registration Statement and Prospectus, as amended, issued in connection with Velocity’s January 2020 initial public offering.
The filed complaint alleges that defendants failed to disclose that, at the time of Velocity's initial public offering (the "IPO"), the Company’s non-performing loans had dramatically increased in size (as measured by both the amount of unpaid principal balance and as a percentage of the Company’s overall loan portfolio) from the figures provided in the Registration Statement and Prospectus that Velocity had issued in connection with the IPO. Further, defendants failed to provide any information to investors regarding the potential impact of the novel coronavirus on Velocity’s business and operations, despite the fact that the international spread of the virus had already been confirmed at the time of the IPO. The failure to disclose the substantial and growing proportion of the Company’s loans that were non-performing and/or on non-accrual status as of the IPO rendered the statements contained in the Registration Statement and Prospectus regarding the quality of the Company’s loan portfolio and underwriting practices materially misleading.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until September 28, 2020 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.