NEW YORK, Sept. 11, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of Florida on behalf of purchasers of Altisource Portfolio Solutions SA ("Altisource" or the "Company") (Nasdaq:ASPS) securities between July 25, 2013 through August 4, 2014, inclusive (the "Class Period").
The class action alleges that the Company and certain of its officers and/or directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you purchased Altisource stock during the Class Period, you may, no later than November 7, 2014, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the Altisource Securities Class Action please contact Morgan & Morgan at 1-800-732-5200 or email info@morgansecuritieslaw.com
The complaint alleges that during the class period Defendants made false and/or misleading statements and/or failed to disclose material information regarding the Company's improper business and operational practices including, among other things, the fact that Ocwen Financial Corporation ("Ocwen"), a financial services holding company of which Defendant William C. Erbey is Chairman of the Board, was funneling as much as $65 million in fees annually from already-distressed homeowners to Altisource for minimal work; and that Erbey, who owns approximately 27% of Altisource's shares outstanding, was directly involved in approving Altisource's conflicted transactions with Ocwen.
Accordingly, Defendants issued materially false and misleading statements and omitted material information from Altisource's public disclosures, which failed to disclose, among other things, that: (i) Altisource was charging exorbitant fees to Ocwen to enable Defendants to funnel as much as $65 million in questionable fees; (ii) despite public representations to the contrary, Defendant Erbey was personally involved in approving conflicted transactions with Altisource and other related entities which he controlled; (iii) the Company failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners; (iv) the Company's financial statements during the Class Period were artificially inflated and did not provide a fair presentation of the Company's finances and operations; (v) the Company lacked adequate internal and financial controls; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On August 4, 2014, news reports disclosed that New York's Department of Financial Services ("DFS") was investigating whether the Company entered into improper transactions with affiliated entities. According to the DFS, it appears that Altisource entered into an arrangement with Ocwen that will generate significant revenue from Ocwen's new forced-place arrangement while requiring little work on Altisource's behalf. Following this news, shares of Altisource declined nearly 15%, to a closing price of $88.65 on August 4, 2014, on heavy volume.
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