Kirby(US:KEX) Businesswire·2026-01-27 04:39Core Viewpoint - Wealthfront Corporation is under investigation for potential violations of federal securities laws and other unlawful business practices following its IPO and subsequent financial performance [1][5]. Group 1: IPO and Initial Performance - Wealthfront completed its Initial Public Offering (IPO) on December 12, 2025, offering 34,615,384 shares at a price of $14.00 per share [2]. - The company's first quarterly results as a publicly traded entity, published on January 12, 2026, revealed net deposit outflows of $208 million, a significant decline from the $874 million inflows during the same period the previous year [3]. Group 2: Management Insights and Stock Performance - CEO David Fortunato attributed the decline in deposits to falling interest rates and highlighted the strategic importance of Wealthfront's new home-lending business as a protective measure against further declines [3]. - Fortunato disclosed that he holds a 95.1% stake in Wealthfront's home-lending business and mentioned the possibility of revising the ownership structure [3]. - Following the earnings call, Wealthfront's share price dropped by $2.12, or approximately 16.8%, from $12.59 to $10.47 [3]. - Since the IPO, Wealthfront's share price has decreased by $5.20, or about 37.1%, closing at $8.80 on January 20, 2025 [4].