INVESTOR ALERT: Class Action Lawsuit Against Home Loan Servicing Solutions, Ltd. Announced by Law Offices of Howard G. Smith
January 30 2015 - 5:04PM
Business Wire
Law Offices of Howard G. Smith announces that a class action
lawsuit has been filed in the United States District Court for the
Southern District of New York on behalf of purchasers of the
securities of Home Loan Servicing Solutions, Ltd. (“HLSS” or the
“Company”) (NASDAQ:HLSS) between February 7, 2013 and January 23,
2015, inclusive (the “Class Period”).
HLSS engages in the acquisition of mortgage servicing assets,
including servicing advances, mortgage servicing rights, rights to
mortgage servicing rights, and other related assets. On December
22, 2014, the Company announced that William C. Erbey will be
stepping down as non-executive Chairman of the Board of Directors
of HLSS effective January 16, 2015. Erbey also stepped down from
his post as executive chairman of Ocwen Financial Corporation
following an investigation by New York State regulatory authorities
that alleged conflicts of interests involving financial
transactions involving Ocwen and related companies with financial
ties to Ocwen, including HLSS.
The lawsuit alleges that defendants made false and/or misleading
statements and/or failed to disclose: (1) that HLSS’s business was
dependent on Ocwen and that Ocwen conduct its business legally; (2)
material risks and uncertainties of HLSS’s business due to systemic
internal control weaknesses at Ocwen; (3) that Ocwen was under
investigation for allegedly violating applicable federal and state
regulations and laws; (4) that HLSS was in breach of provisions of
its notes with BlueMountain Capital Management; and (5) material
risks to the Company if it defaults on its notes.
On January 23, 2015, Forbes reported that BlueMountain Capital
Management delivered a notice of default against HLSS Servicer
Advance Receivables Trust on the notes BlueMountain Capital owns
that were issued in connection the Trust, citing Ocwen’s regulatory
problems, among other recent actions, that “materially increase the
risk of loss on the Notes that are collateralized by receivables
affected by Ocwen’s standing as a servicer.” Following this news,
shares of HLSS declined by $1.59 per share, closing at $13.76 on
January 23, 2015, on extremely heavy trading volume.
If you are a member of the Class described above, you have until
March 30, 2015, to move the Court to serve as lead plaintiff, if
you meet certain legal requirements. 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, 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
howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.com.
Law Offices of Howard G. SmithHoward G. Smith, Esquire(215)
638-4847(888)
638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
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