Rocket Says 2021 Stock Sale Was Meant to Cover IPO’s Shortfall

May 20, 2024, 7:34 PM UTC

Online lender Rocket Cos. Inc. on Monday sought to downplay revenue projections cited in shareholder litigation as evidence of insider trading in a $500 million stock sale in 2021.

The sale was the result of months of preparation for an additional stock sale to make up a shortfall in capital from Rocket’s 2020 initial public offering, Scott Elkins, chief investment officer at Rock Ventures LLC, testified before the Delaware Court of Chancery on the first day of a four-day trial.

A lawsuit claims Rocket’s decision to approve the sale of 20.2 million shares of Rocket Class A common stock by ...

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