Velocity Financial Inc. Common Stock (NYSE: VEL)
According to the Complaint, Velocity Financial, Inc. is a real estate finance company that primarily originates and manages loans secured by one-to-four unit residential retail and small commercial properties.
This is a securities class action on behalf of all purchasers of Velocity common stock pursuant and/or traceable to the Registration Statement and Prospectus, as amended, issued in connection with Velocity’s January 2020 IPO.
The Complaint alleges that Defendants failed to disclose that, at the time of the IPO, the Company’s non-performing loans had dramatically increased in size from the figures provided in the Offering Materials, as measured by both the amount of unpaid principal balance and as a percentage of the Company’s overall loan portfolio. In addition, the Complaint alleges Defendants failed to provide any information to investors regarding the potential impact of the novel coronavirus on Velocity’s business and operations, despite the fact that the international spread of the virus had already been confirmed at the time of the IPO.