Robbins Arroyo LLP: Home Loan Servicing Solutions, Ltd. (HLSS) Misled Shareholders According to a Recently Filed Class Action...
February 02 2015 - 7:21PM
Shareholder rights law firm Robbins Arroyo LLP announces that an
investor of Home Loan Servicing Solutions, Ltd. (Nasdaq:HLSS) has
filed a federal securities fraud class action complaint in the U.S.
District Court for the Southern District of New York. The complaint
alleges that the company and certain of its officers and directors
violated the Securities Exchange Act of 1934 between February 7,
2013 and January 23, 2015. Home Loan Servicing engages in the
acquisition of mortgage servicing assets.
View this information on the law firm's Shareholder Rights
Blog:
www.robbinsarroyo.com/shareholders-rights-blog/home-loan-servicing-solutions-inc
Home Loan Servicing Is Accused of Misleading
Investors
The complaint alleges that Home Loan Servicing made false and/or
misleading statements and/or failed to disclose that: (i) the
company's business was dependent on Ocwen Financial Corporation
("Ocwen"), which spun off Home Loan Servicing in 2010, conducting
its business legally; (ii) the company's business faced material
risks and uncertainties due to the systemic internal control
weaknesses at Ocwen; (iii) Ocwen was under investigation for
violating applicable federal and state regulations and laws by the
New York Department of Financial Services ("NY DFS") and the State
of California; (iv) the company was in breach of certain provisions
of its notes held by BlueMountain Capital Management, LLC
("BlueMountain"); and (v) the company faced material risks if it
defaulted on its notes.
On December 22, 2014, Home Loan Servicing announced that
Director and Chairman William Erbey would resign effective January
16, 2015. This announcement came on the same day that Mr. Erbey,
founder of Ocwen, agreed to resign as Ocwen's Executive Director as
part of a settlement agreement with the NY DFS related to the
agency's investigation.
On January 13, 2015, it was revealed that California regulators
would seek to suspend Ocwen's mortgage license after Ocwen
repeatedly failed to respond to requests for information regarding
its compliance with the Homeowner Bill of Rights. Then, on January
23, 2015, Forbes reported that BlueMountain delivered a notice of
default to Home Loan Servicing and Ocwen for certain notes, worth
approximately $1 billion, that Home Loan Servicing serviced. Shares
of Home Loan Servicing declined multiple times, on extremely heavy
trading volume, after the market learned the truth about the
company's business prospects.
Home Loan Servicing Shareholders Have Legal
Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
CONTACT: Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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