NEW YORK, Feb. 9, 2015 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against Home
Loan Servicing Solutions Ltd. ("HLSS" or the "Company")(NASDAQ:
HLSS) and certain of its officers. The class action,
filed in United States District Court, Southern District of
New York, and docketed under
15-cv-947 is on behalf of a class consisting of all persons or
entities who purchased HLSS securities between February 7, 2013 and January 23, 2015, inclusive (the "Class
Period"). This class action seeks to recover damages against
Defendants for alleged violations of the federal securities laws
under the Securities Exchange Act of 1934 (the "Exchange
Act").
If you are a shareholder who purchased HLSS securities during
the Class Period, you have until March 30,
2015 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
Home Loan Servicing Solutions, Ltd., through its subsidiaries,
engages in the acquisition of mortgage servicing assets. Its
mortgage servicing assets consists of servicing advances, mortgage
servicing rights, rights to mortgage servicing rights, and other
related assets.
The Complaint alleges that the Company made false and/or
misleading statements and/or failed to disclose that: (i) the
Company's business was dependent on Ocwen Financial Corporation
("Ocwen") and Ocwen 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, including among other things, the New York
Department of Financial Services' and the state of California's investigation of Ocwen; (iv) the
Company was in breach of provisions of its notes held by
BlueMountain Capital Management, LLC; and (v) the Company faced
material risks if it defaults on its notes.
On December 22, 2014, HLSS filed a
Form 8-K with the SEC with a press release stating that Defendant
William C. Erbey was stepping down
as Director and Chairman of HLSS effective January 16, 2015 and Robert J. McGinnis would be the new
Chairman. On the news of Defendant Erbey's resignation,
shares in HLSS securities fell $1.02,
or about 4.89%, to a closing price of $19.83 on December 22,
2014.
On January 13, 2015, it was
revealed in an article published by Investor's Business
Daily that California
regulators were seeking to suspend Ocwen's mortgage license. On
this news, HLSS shares fell $3.14, or
about 19.51%, to a closing price of $12.95 on January 13,
2015.
On January 23, 2015, BlueMountain
Capital Management, LLC sent a notice of default to HLSS and Ocwen
on certain notes HLSS serviced. Due to recent regulatory
sanctions against Ocwen, which also has an impact on HLSS, it
constituted a breach and a default under the terms of the leading
agreement. On this news, HLSS shares fell $1.59, or more than 10.35% to close at
$13.76 on January 23, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP