OCWEN RECEIVES SUBPOENA FROM THE SEC; Investor Rights Firm Johnson & Weaver, LLP Investigates Potential Violations of Federal Securities Laws from as Far Back as 2012.
SAN DIEGO--(BUSINESS WIRE)--In a filing with the United States Securities and Exchange Commission (“SEC”) earlier this week, Ocwen Financial Corporation (NYSE: OCN) disclosed that it received a subpoena from the SEC requesting documents related to a group of companies with which Ocwen conducts business. This is the latest in a series of negative news concerning the Company.
In addition to the SEC subpoena, a class action lawsuit has been filed in the United States District Court for the Southern District of Florida. While that lawsuit only seeks recovery on behalf of all persons who purchased or otherwise acquired the securities of during the period between May 2, 2013 through August 11, 2014, inclusive (the "Class Period"), Johnson & Weaver is investigating whether shareholders that purchased or acquired Ocwen securities as early as 2012 have recourse as well.
If you purchased Ocwen common stock anytime since 2012, you may have standing to hold the Company harmless from the damage the officers and directors caused and make them personally responsible. You may also be able to assist in reforming the Company’s corporate governance to prevent future wrongdoing. The Company's stock price closed at $26.90 on August 22, 2014 down 55% from the 52 week high of $60.18 on October 28, 2013.
About The Class Action Allegations
The class action complaint alleges that during the Class Period, Defendants issued materially false and misleading statements and omitted material information from Ocwen's public disclosures, which failed to disclose, among other things, that: (i) Altisource Portfolio Solutions, S.A. ("Altisource") -- a company of which Defendant William C. Erbey, Ocwen's Chairman of the Board, owns approximately 27% of its shares outstanding -- was charging exorbitant fees to Ocwen to enable Defendants to funnel as much as $65 million in questionable fees; (ii) despite public representations to the contrary, Defendant Erbey was personally involved in approving conflicted transactions with Altisource and other related entities which he controlled; (iii) the Company failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners; (iv) the Company's financial statements during the Class Period were artificially inflated and did not provide a fair presentation of the Company's finances and operations; (v) the Company lacked adequate internal and financial controls; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times. In addition, the Company's financial results were artificially inflated during the Class Period, resulting in a restatement of the Company's financial results.
Directors and Officers Accountability
Directors and officers have a duty of loyalty to the corporation and shareholders, which means they must not place their interest above the Company. The duty of care requires a director to act in good faith and on an informed basis when implementing or voting on corporate action.
If you are a shareholder of Ocwen and believe: 1) damage was caused to the Company, and 2) officers or directors are responsible for the damage and they should be held liable rather than the Company and its shareholders, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If you email, please include your phone number.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.