Rocket Companies Inc (RKT)

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Detroit Free Press, June 29th 8:16 P.M. : Detroit based RKT companies was hit Tuesday w/ a shareholder lawsuit accusing firm & executives of giving misleading guidance that the suit says artificially boosted RKT stock price in the weeks before founder Danny Gilbert & his wife sold 20.2 million shares worth up to $500 million. The lawsuit filed in Detroit claims RKT executives were extremely optimistic to the point of deception & fraud earlier this year when forecasting the anticipated “gain on sale” margin for its loans. But once the May 5th release of 1st quarter earnings were showing these margins were shrinking fast , the stock price dropped from $22.80 a share all the way down to $19.00. During that May earnings call, RKT CFO Julie Booth admitted that the trend toward sinking gain on sale margins began at the “end of Q1” the lawsuit says. A RKT companies rep did not respond to a request for comment.