Velocity is facing a class action lawsuit alleging that defendants failed to disclose that, at the time of Velocity's initial public offering, the Company’s non-performing loans had dramatically increased in size (as measured by both the amount of unpaid principal balance and as a percentage of the Company’s overall loan portfolio) from the figures provided in the Registration Statement and Prospectus that Velocity had issued in connection with the IPO. Further, 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. The failure to disclose the substantial and growing proportion of the Company’s loans that were non-performing and/or on non-accrual status as of the IPO rendered the statements contained in the Registration Statement and Prospectus regarding the quality of the Company’s loan portfolio and underwriting practices materially misleading.
If you incurred a loss on VEL stocks purchased pursuant and/or traceable to the Registration Statement and Prospectus, as amended, issued in connection with Velocity’s January 2020 initial public offering ("IPO"), this lawsuit is on your behalf. The lawsuit was filed in the the United States District Court for the Central District of California, and our firm is reaching out to investors to discuss their legal rights.
If you wish to act as a representative of the shareholders harmed by this misconduct, you may ask the court to appoint you as lead plaintiff. A lead plaintiff directs the litigation and participates in important decisions, including whether to accept a settlement for the class in the action.
You only have until September 28, 2020 to apply to be lead plaintiff. The court will then evaluate the applicants and choose a lead plaintiff. You are not required to act as a lead plaintiff in order to participate in any recovery.
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