Rocket Companies(RKT) Prnewswire·2025-06-06 09:45Core Viewpoint - A class action securities lawsuit has been filed against Rocket Companies, Inc. alleging securities fraud that negatively impacted investors between March 29, 2021, and April 1, 2021 [1][2]. Group 1: Allegations of Fraud - The lawsuit claims 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 the lower margin Partner Network segment [2]. - It is alleged that Rocket was engaged in a price war with competitors in the wholesale market, further compressing margins in the Partner Network segment [2]. - The complaint states that adverse trends were accelerating, with Rocket's gain on sale margins expected to plummet by at least 140 basis points in the first half of 2021 [2]. - The favorable market conditions that previously allowed Rocket to achieve high gain on sale margins had disappeared, returning margins to levels not seen since Q1 2019 [2]. - The company's gain-on-sale margins had fallen materially below recent historical averages, contradicting positive statements made by the defendants regarding the company's operations and prospects [2]. Group 2: Legal Process and Participation - Investors who suffered losses during the relevant time frame have until July 8, 2025, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, with no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].