Rocket Companies(RKT) Prnewswire·2025-05-20 22:11Core Viewpoint - A class action lawsuit is pending against Rocket Companies, alleging securities fraud and unlawful business practices by the company and its executives [2][3]. Summary by Relevant Sections Class Action Details - The lawsuit is on behalf of all individuals and entities that purchased Rocket Companies securities between March 29, 2021, and April 1, 2021, seeking damages for violations of federal securities laws [2]. - Investors have until July 8, 2025, to request appointment as Lead Plaintiff if they acquired Rocket securities during the specified Class Period [3]. Allegations Against Rocket Companies - The complaint alleges that Rocket's gain on sale margins were contracting at the highest rate in two years due to increased competition among mortgage lenders and a shift towards lower-margin operations [3]. - It is claimed that Rocket was engaged in a price war in the wholesale market, further compressing margins [3]. - The adverse trends were reportedly accelerating, with expectations that gain on sale margins would plummet by at least 140 basis points in the first half of 2021 [3]. - The favorable market conditions that previously allowed Rocket to achieve high gain on sale margins had disappeared, returning to levels not seen since Q1 2019 [3]. - The company's gain-on-sale margins had fallen materially below recent historical averages, contradicting prior positive statements made by the defendants about the company's operations and prospects [3].