An investor sued current and former senior leaders at LoanDepot Inc., claiming insiders gave themselves $655 million in questionable distributions in connection with its 2021 initial public offering.
The lawsuit, made public July 14, accuses ex-CEO Anthony Hsieh of using illicit mortgage underwriting practicesto inflate LoanDepot’s debut price while he and Parthenon Capital Partners, a private equity backer, took profit distributions worth $279 million in the leadup to the listing. Parthenon isn’t named as a defendant.
The company also allegedly handed out more than $375 million in additional profits and tax-related payouts to its pre-IPO unitholders. “During this time, at ...
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