| COMPANY |
Rocket Companies, Inc. |
| COURT |
United States District Court for the Eastern District of Michigan |
| CASE NUMBER |
21-cv-11528 |
| JUDGE |
The Honorable Thomas L. Ludington |
| CLASS PERIOD |
February 25, 2021 through May 5, 2021 |
| SECURITY TYPE |
Common Stock (A) |
Case Background:
This is a class action lawsuit on behalf of all investors who purchased Rocket Companies, Inc. (“Rocket”) common stock from February 25, 2021 through May 5, 2021 (the “Class Period”).
The Complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) 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; (3) the adverse trends 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; (4) 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 Rocket’s gain on sale margins had returned to levels not seen since the first quarter of 2019; (5) rather than remaining elevated due to surging demand, Rocket’s gain on sale margins had fallen materially below recent historical averages; and (6) as a result of the foregoing, the defendants’ positive statements about Rocket’s business operations and prospects were materially misleading and/or lacked a reasonable basis.
Current Status of Case:
On February 12, 2024, Lead Plaintiff filed an Amended Complaint and Renewed Motion to Certify Class. Defendants filed an Answer to the Amended Complaint on February 26, 2024. On July 16, 2024, Defendants filed a Motion for Summary Judgment. The Motion to Certify Class and Motion for Summary Judgment is being briefed by the parties and is pending before the Court. This action is in the discovery phase and ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.