BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Ocwen Financial Corporation (“Ocwen” or the “Company”) (NYSE: OCN) securities between January 13, 2015 and April 20, 2017, inclusive (the “Class Period”). Ocwen investors have until June 20, 2017 to file a lead plaintiff motion.
Investors suffering losses on their Ocwen investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On April 20, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a press release announcing that it was suing Ocwen and its subsidiaries for “failing borrowers at every stage of the mortgage servicing process.” Specifically, the CFPB claimed that “Ocwen’s years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their homes” and that Ocwen “botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance.” The CFPB also claimed that Ocwen “foreclosed on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers’ records.” On this news, the Company’s stock price declined $2.91 per share, or 53.8%, to close at $2.49 per share on April 20, 2017, on unusually heavy trading volume.
The complaint filed in this 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 failed to disclose: (1) that the Company loaded inaccurate information into its REALServicing proprietary system; (2) that the REALServicing system generated errors due to deficient programming; (3) that the Company wrongfully initiated foreclosure proceedings on at least 1,000 people, and wrongfully held foreclosure sales; (4) that the Company failed to appropriately credit payments made by numerous borrowers; (5) that the Company failed to send borrowers accurate periodic statements detailing the amount due, how payments were applied, total payments received, and other information, and failed to correct billing and payment errors; (6) that the Company botched basic tasks in managing escrow accounts; (7) that the Company failed to make timely insurance payments for home insurance premiums, causing the lapse of homeowners’ insurance coverage for more than 10,000 borrowers; (8) that the Company failed to cancel borrowers’ private mortgage insurance in a timely manner, causing consumers to overpay; (9) that the Company enrolled some consumers in add-on products through deceptive solicitations and without their consent; (10) that the Company mishandled accounts for successors-in-interest, or heirs, to a deceased borrower; (11) that the Company routinely failed to properly acknowledge and investigate complaints, or make necessary corrections; (12) that the Company failed to include complete and accurate borrower information when it sold its rights to service thousands of loans to new mortgage servicers; and (13) that, as a result of the foregoing, Defendants’ statements about Ocwen’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.
If you purchased shares of Ocwen during the Class Period you may move the Court no later than June 20, 2017 to ask the Court to appoint you as lead plaintiff in this class action lawsuit. 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 action lawsuit. 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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