SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased or otherwise acquired the securities of Ocwen Financial Services Corporation (“Ocwen” or the “Company”) (NYSE: OCN) between May 2, 2013 and August 11, 2014, inclusive (the “Class Period”).
If you purchased or otherwise acquired Ocwen securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 13, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Ocwen investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Ocwen Securities Class Litigation
The actions charge Ocwen and certain of its senior officers and directors with violations of the Securities Exchange Act of 1934. Ocwen is a financial services holding company which, through its subsidiaries, is engaged in the servicing and origination of forward and reverse mortgage loans.
The complaints allege that defendants misrepresented and/or failed to disclose, among other things, that: (1) Ocwen’s executives allowed related company Altisource Portfolio Solutions, S.A. (“Altisource”) – 27% of whose outstanding shares are owned by Ocwen’s Chairman, defendant William C. Erbey – to impose as much as $65 million in questionable fees for services provided to Ocwen; (2) Erbey, along with other Ocwen directors and officers, was directly involved in approving Ocwen’s conflicted transactions with Altisource and other related entities which Erbey controlled; (3) Ocwen failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners; (4) Ocwen’s financial statements during the Class Period were artificially inflated and did not provide a fair presentation of the Company’s finances and operations; and (5) the Company lacked adequate internal and financial controls.
On December 19, 2013, the New York Times reported that Ocwen entered into a $2.2 billion settlement with the Consumer Financial Protection Bureau (the “CFPB”) in connection with Ocwen’s mortgage servicing business. According to the article, the CFPB “believe[s] that Ocwen violated federal consumer financial laws at every stage of the mortgage servicing process[.]” On this news, Ocwen’s stock price declined $1.06 per share, or 1.89%, from a close of $56.00 on December 18, 2013, to close at $54.94 on December 19, 2013.
On February 6, 2014, Ocwen announced that its purchase from Wells Fargo Bank, N.A. of loan servicing rights on 184,000 loans was halted by the New York State Department of Financial Services (the “NYDFS”) only two weeks after the deal was announced. On this news, Ocwen’s stock price declined an additional $1.82 per share, or 4.21%, from a close of $43.20 on February 5, 2014, to close at $41.38 on February 6, 2014.
On February 26, 2014, Bloomberg reported that the NYDFS issued a letter to Ocwen requesting information about potential conflicts of interests arising from Erbey’s interests in Ocwen affiliates which, according to NYDFS, “cast serious doubts on recent public statements made by the company that Ocwen has a ‘strictly arms-length business relationship’ with those companies.” On this news, Ocwen’s stock price declined an additional $2.76 per share, or 6.98%, from a close of $39.52 on February 25, 2014, to close at $36.76 on February 26, 2014.
On August 4, 2014, the NYDFS issued a second letter to Ocwen stating that it was reviewing what it called “a troubling transaction” with Altisource relating to the provision of force-placed insurance which was “designed to funnel as much as $65 million in fees annually from already-distressed homeowners to Altisource for minimal work.” On this news, Ocwen’s stock price declined an additional $0.70 per share, or 2.53%, from a close of $27.68 on August 1, 2014, to close at $26.98 on August 4, 2014.
On August 12, 2014, Ocwen disclosed that certain transactions with another related company, Home Loan Servicing Solutions, Ltd., in which defendant Erbey holds a substantial stake, would require the Company restating its financial results for the fiscal year ended December 31, 2013 and the quarter ended March 31, 2014. On this news, Ocwen’s stock price declined an additional $1.18 per share, or 4.48%, from a close of $26.34 on August 11, 2014, to close at $25.16 on August 12, 2014.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for eleven years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have also named Lieff Cabraser as a “Law Firm of the Year” each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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