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Velocity Financial, Inc.
Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the common stock of Velocity Financial. (“Velocity” or the “Company”) (NYSE: VEL) issued in connection with Velocity’s January 2020 IPO (the “Offering Materials”).
If you purchased shares of Velocity and would like to discuss your legal rights and/or options please click “Join Class Action” above.
New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the common stock of Velocity Financial. (“Velocity” or the “Company”) (NYSE: VEL) issued in connection with Velocity’s January 2020 IPO (the “Offering Materials”). The lawsuit filed in the United States District Court for the Central District of California alleges violations of the Securities Act of 1933.
According to the lawsuit, the Registration Statement featured false and/or misleading statements and/or failed to disclose : (1) that a significantly higher proportion of its loan portfolio had become non-performing loans; and (2) any information regarding the onset of the coronavirus, including whether the coronavirus was adversely impacting the real estate market or the Company’s business, operations or financial condition.
On May 13, 2020 Velocity issued a release and investor presentation and held an earnings call providing the Company’s financial and operational results for the first quarter of 2020. The Company stated that its net income decreased 50% sequentially during the quarter to just $2.6 million. The Company also confirmed that the suspension of loan origination would continue for an indeterminate amount of time, effectively halting all potential growth in the Company’s loan portfolio. In addition, the Company stated that its proportion of non-performing loans had accelerated to $174 million, nearly double the unpaid principal amount year over year, and constituted 8.17% of the Company’s total portfolio, 252 basis points over the prior year. Velocity’s portfolio yield also fell 32 basis points sequentially to 8.57% due in substantial part to the rising number of non-performing loans.
If you wish to serve as lead plaintiff, you must move the Court no later than September 28, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Matthew E. Guarnero
Bernstein Liebhard LLP