A lawsuit was filed by a current investor in NYSE:OCN shares against certain directors of Ocwen Financial Corp and NYSE:OCN stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/26/2015 -- An investor, who currently holds NYSE:OCN shares, filed a lawsuit against certain Ocwen Financial Corp directors over alleged breaches of fiduciary duties.
The plaintiff alleges that a board member of Ocwen Financial Corp improperly profited from selling a $72 million company stake held by his financial funds weeks before Ocwen Financial Corp's quarterly performance was disclosed.
Investors who purchased shares of Ocwen Financial Corp (NYSE:OCN) in early 2013 or earlier and currently hold any of those NYSE:OCN shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
The plaintiff claims that board of directors member Wilbur L. Ross Jr. used his position as an Ocwen Financial board member and as manager of WL Ross & Co. LLC and other funds to sell over $72 million in Ocwen Financial stock back to the company two weeks before a 20% percent drop in the stock price, which followed Ocwen Financial Corp's disclosure of poor performance for the quarter ending June 30, 2014.
On August 4, 2014, the New York's Department of Financial Services disclosed that it was investigating whether Ocwen Financial Corp entered into improper transactions with affiliated entities. According to the New York's Department of Financial Services, Ocwen Financial Corp entered into an arrangement with Altisource Portfolio Solutions S.A., whose executives have substantial ties to Ocwen Financial Corp, which raises concerns about whether such transactions were priced fairly and conducted at arm's-length. Shares of Ocwen Financial Corp (NYSE:OCN) declined to as low as $25.37 per share on August 7, 2014. Then on August 12, 2014, Ocwen Financial Corp announced in a filing with the SEC that on August 12, 2014, the Board of Directors and the Audit Committee of the Board of Directors of Ocwen Financial Corp after consultation with Deloitte & Touche LLP, the Company's independent registered public accounting firm, determined that Ocwen Financial Corp's financial statements for the fiscal year ended December 31, 2013 and the quarter ended March 31, 2014 can no longer be relied upon as being in compliance with generally accepted accounting principles ("GAAP"), and that accordingly, Ocwen Financial Corp will restate such financial statements.
On August 12, 2014, a lawsuit was filed against Ocwen Financial Corp over alleged securities laws violations. The plaintiff claims that Defendants issued allegedly materially false and misleading statements and allegedly omitted material information from Ocwen Financial Corp 's public disclosures, which allegedly failed to disclose, among other things, that Altisource Portfolio Solutions, S.A. was charging exorbitant fees to Ocwen Financial Corp to enable Defendants to funnel as much as $65 million in questionable fees, that despite public representations to the contrary, Defendant Erbey was personally involved in approving conflicted transactions with Altisource Portfolio Solutions, S.A. and other related entities which he controlled, that the Company failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners, that the Company's financial statements between May 2, 2013 and August 11, 2014were artificially inflated and did not provide a fair presentation of the Company's finances and operations, that the Company lacked adequate internal and financial controls, and that as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On January 13, 2015, it was revealed that California regulators are seeking to suspend the mortgage license of Ocwen Financial Corporation (NYSE:OCN).
Shares of Ocwen Financial Corp (NYSE:OCN) declined to as low as $6.51 per share on January 14, 2015. In fact, since October 2013, when NYSE:OCN shares traded as high as $59.97 per share, shares of Ocwen Financial Corp have lost more than 80% of its value.
Those who purchased shares of Ocwen Financial Corp (NYSE:OCN) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego