BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming May 15, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of a class of investors who purchased or otherwise acquired Walter Investment Management (“Walter Investment” or the “Company”) (NYSE: WAC) securities between May 3, 2016 and March 13, 2017, inclusive (the “Class Period”). Walter Investment investors have until May 15, 2017 to file a lead plaintiff motion.
On March 14, 2017, the Company disclosed that it received a subpoena from the HUD Inspector General for documents and information relating to origination and underwriting of certain specified loans. The Company further disclosed that the Justice Department’s Civil Division is coordinating the investigation, and there is a possibility of a demand or a claim under the False Claims Act. The Company also disclosed a material weakness in its Ditech unit and is taking steps to remediate the weakness. On this news the Company’s shares fell $1.05 per share, or nearly 40%, on March 14, 2017.
The Complaint filed in this class action lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s Ditech subsidiary had a material weakness in its internal control over operational processes; (ii) accordingly, the Company lacked effective internal controls over financial reporting; and (iii) as a result of the foregoing, Walter’s public statements were materially false and misleading at all relevant times.
If you purchased Walter Investment securities, you may move the Court no later than May 15, 2017 to request appointment as lead plaintiff. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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