Levi & Korsinsky, LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Velocity Financial, Inc. (NYSE: VEL) securities.
If you suffered a loss on your Velocity investment and would like to explore a potential recovery under the federal securities laws, submit to us or contact Joseph E. Levi, Esq. via email at [email protected] or call 212-363-7500 to speak to our team of experienced shareholder advocates.
THE LAWSUIT: Jan 16 2020 - Jan 01 3000
CASE DETAILS:
According to the filed complaint, 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.
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