Core Viewpoint - Wealthfront Corporation is under investigation for potential violations of federal securities laws, particularly concerning misleading statements made during its IPO process [1][3]. Company Overview - Wealthfront is an online financial advisor that utilizes automated tools to provide investment and financial advice [2]. IPO Details - On December 12, 2025, Wealthfront completed its IPO, offering over 34 million shares at a price of $14.00 per share [2]. Financial Performance - Wealthfront reported net deposit outflows of $208 million in its first quarterly results as a public company, a significant decline from the $874 million inflows during the same period the previous year [4]. - The stock price dropped by $2.12, nearly 17%, from $12.59 to $10.47 per share following the earnings report [4]. Management Commentary - CEO David Fortunato attributed the decline in deposits to falling interest rates and highlighted the strategic importance of Wealthfront's new home-lending business [4]. - Fortunato disclosed that he owns a 95.1% stake in the home-lending business and mentioned the possibility of revisiting the ownership structure [4].
WLTH REMINDER: Wealthfront Corporation Investors are Reminded of BFA Law's Ongoing Securities Investigation for Investors Seeking Recovery
TMX Newsfile·2026-01-31 13:18