SAN FRANCISCO, Aug. 25, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, advises investors of the Oct. 14, 2014, lead plaintiff deadline in the securities fraud class action against Ocwen Financial Corporation (NYSE:OCN) ("Ocwen" or "the Company"). Investors who purchased Ocwen shares between May 2, 2013 and August 11, 2014 (the "Class Period") should contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000, emailing OCN@hbsslaw.com or visiting http://hb-securities.com/investigations/OCN.
The complaint, filed in the Southern District Court of Florida on Aug. 12, 2014, and docketed as 9:14-CV-81057-WPD, alleges that Ocwen made false and misleading statements and failed to disclose several material facts throughout the Class Period. Beginning in December 2013, the truth gradually emerged that Ocwen's mortgage servicing practices were in serious violation of state and local laws; that Ocwen's Chairman of the Board, William Erbey, owns several companies who provide services to Ocwen at unconscionable rates; and that Erbey and the other directors and officers were directly involved in approving these conflicted transactions.
Ocwen's twisted insider dealings began to unravel following the December 2013 announcement that the Company had entered into a $2.2 billion settlement with the Consumer Financial Protection Bureau. In February 2014, the New York Department of Financial Services issued a letter questioning Ocwen's transactions with affiliated companies. The Department issued a second letter on August 4, 2014, alerting Ocwen that it was reviewing a particular transaction that would divert up to $65 million in fees to Erbey's company Altisource.
More revelations followed on August 12, 2014 when the Company disclosed additional transactions with another related company that forced Ocwen to restate its financial results for the fiscal year ended December 31, 2013 and for the first quarter of 2014. Throughout this period, as Ocwen revealed more about its practices, the Company's stock price plummeted a total of 55% from $56.00 on December 18, 2013 to a closing price of $25.16 on August 12, 2014.
"That a company and its directors would so flagrantly profit at the expense of consumers and shareholders is offensive," said Mr. Kathrein. "It is time the shareholders recovered the money they lost as a result of Ocwen's self-dealing."
If you have suffered a loss greater than $200,000 from your investment in Ocwen securities purchased on or after May 2, 2013 and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
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