Securities Class Action Filed Against Altisource Asset Management Corporation
Violations of federal securities laws as a result of a series of materially false statements. The Complaint alleges that, during the Class Period, Defendants misrepresented and/or concealed the Company’s relationship, and conflicted transactions, with a group of related companies, including Ocwen Financial Corporation (“Ocwen”), all of which were founded by Defendant, William C. Erbey (“Erbey”). On December 22, 2014, the Company announced that, as part of the terms of a settlement Ocwen had reached with the New York Department of Financial Services (“New York DFS”), Erbey would be stepping down as chairman of Altisource’s Board and from his positions at each of the related companies. As part of its investigation, the New York DFS indicated that it had uncovered “serious conflicts of interest between the Related Companies.” As a result of this announcement, Altisource’s stock price declined over 23%, from a closing price of $465.30 per share on December 19, 2014, to close at $356.50 per share on December 22, 2014, on high trading volume. On January 13, 2015, the California Department of Business Oversight announced that it was seeking to revoke Ocwen’s license to operate in the state. On this news, the price of Altisource’s stock fell over 33% from a closing price of $321.81 per share on January 12, 2015, to close at $214.27 per share on January 13, 2015. Filed in D.V.I.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 3/17/2015.
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