SHORT- SELLER FILES $4M LAWSUIT AGAINST HOME CAPITAL, EXECS

Shortseller Marc Cohodes, who waged a public battle with Home Capital Inc., is suing the mortgage lender and three former executives for $ 4 million, accusing them of “negligent and/or fraudulent misrepresentation.” Cohodes invested in Home Capital in 2014 after concluding the shares were “potentially overvalued,” according to a 19- page statement of claim. He reduced his position in 2015 when Home Capital’s shares did not move significantly and the company continued to report positively on its mortgage business in public disclosures. In order to close the positions, Cohodes repurchased 91,800 shares at prices in excess of $ 40 per share, at a cost of more than $ 3.6 million. Home Capital could not be reached for comment.