INVESTOR ALERT: Law Offices of Howard G. Smith Announces Investigation of Velocity Financial, Inc. (VEL) on Behalf of Investors
Law Offices of Howard G. Smith announces an investigation on behalf of Velocity Financial, Inc. ("Velocity" or the "Company") (NYSE: VEL) investors concerning the Company and its officers' possible violations of federal securities laws.
In January 2020, Velocity completed its initial public offering ("IPO"), selling 7,250,000 shares at $13 per share and raising approximately $94 million.
On May 13, 2020, the Company announced its financial results for first quarter 2020, the same quarter in which the IPO was conducted. Velocity reported a 50% decrease in net income and disclosed that its lon originations would remain suspended indefinitely, effectively halting potential growth in the Company's loan portfolio. Moreover, the Company stated that its proportion of non-performing loans had accelerated to $174 million, nearly double the unpaid principal amount year over year.
Since the IPO, the Company's shares have traded as low as $2.47 per share, or 80% below the $13 IPO price.
If you purchased Velocity securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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