Velocity Financial Announces the Dismissal of Class Action Lawsuit
January 28 2021 - 8:30AM
Business Wire
Velocity Financial, Inc. (NYSE: VEL), (“Velocity” or the
“Company”), a leading provider of small balance investor loans,
today announced that a motion to dismiss the class action lawsuit
brought against the Company, its Directors at the time of the
Company’s IPO, its former controlling shareholder, and its IPO
underwriters was granted by the judge presiding over the case (the
“Dismissal Order”).
Chris Farrar, President and CEO, stated, “We are very pleased
that the judge in the case agreed the lawsuit was without merit and
granted our request for dismissal. Velocity takes its disclosure
obligations seriously and will continue to be transparent with
investors.”
As previously disclosed in the Company’s SEC filings, the
Company, certain of its directors at the time of the IPO, its
former controlling shareholder and its IPO underwriters were named
as defendants in a securities class action lawsuit filed in the
United States District Court for the Central District of
California, captioned Edward A. Berg v. Velocity Financial, Inc. et
al., Civil Action No. 2:20-cv-06780-RGK-PLA (filed on July 29,
2020). The Dismissal Order was entered on January 25, 2021.
The Company and its directors were represented in this matter by
the law firm of Simpson Thacher & Bartlett LLP.
About Velocity Financial,
Inc.
Based in Westlake Village, California, Velocity is a vertically
integrated real estate finance company that originates and manages
investor loans secured by 1-4 unit residential rental and small
commercial properties. Velocity originates loans nationwide across
an extensive network of independent mortgage brokers it has built
and refined over 15 years.
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Investors and Media: Chris Oltmann (818) 532-3708
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