NEW YORK, Aug. 10, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP ( www.kaplanfox.com) is investigating claims on behalf of investors of Velocity Financial, LLC ("Velocity Financial" or the "Company") (VEL) - Get Velocity Financial Inc. Report. A complaint has been filed on behalf of purchasers of Velocity's common stock pursuant and/or traceable to Velocity's January 2020 initial public offering ("IPO").
On January 22, 2020, Velocity sold more than 8.3 million Velocity shares at $13 per share in the Company's IPO.
Then, on May 13, 2020, Velocity issued a press release and investor presentation in connection with reporting the Company's financial results for the first quarter of 2020 - the same quarter in which the IPO was conducted. Among other things, Velocity disclosed that the proportion of non-performing loans had ratcheted up from 6.88% at the end of the fourth quarter of 2019 to 8.17% in the first quarter of 2020. According to the complaint, at the time of the IPO the Company failed to disclose the substantial and growing proportion of the Company's loans that were non-performing and/or on non-accrual status.
By May 15, 2020 Velocity's shares closed at $2.53 per share - more than 80% below the price investors paid for Velocity's shares in the IPO just four months earlier.
If you are a member of the proposed Class, you may move the court no later than September 28, 2020 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 646-315-9003.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, your rights, or your interests, please contact:
Donald R. Hall KAPLAN FOX & KILSHEIMER LLP850 Third Avenue, 14th Floor New York, New York 10022(646) 315-9003E-mail: firstname.lastname@example.org
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SOURCE Kaplan Fox & Kilsheimer LLP