The Law Offices of Frank R. Cruz Announces Investigation of Velocity Financial, Inc. (VEL) on Behalf of Investors
The Law Offices of Frank R. Cruz 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.
If you are a shareholder who suffered a loss, click here to participate.
In January 2020, Velocity competed 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 loan 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Smart City with a Social Conscience