Home Point Capital, the parent company of wholesale lender HomePoint, is facing a class action lawsuit for allegedly making a number of false and misleading statements in documents filed about its IPO.
The lawsuit was filed in the US District Court for the Eastern District of Michigan by the law firm Pomerantz and was filed on behalf of all persons and entities who owned Home Point common stock during the The company went public on January 29thin order to assert compensation for damages caused by the defendant’s violations of federal securities laws.
In the lawsuit, Pomerantz alleged that the offer documents were “negligently created” and that they therefore provided false and / or misleading information. The law firm also alleged Home Point failed to disclose that expanding its broker partner network would significantly increase the firm’s expenses. From 2018 to 2020, Home Point expanded its network from 1,623 brokers to almost 5,000, representing an annualized growth rate of 88%.