San Diego, CA -- (SBWIRE) -- 05/27/2014 -- An investigation on behalf of current long-term investors in shares of Ocwen Financial Corp (NYSE:OCN) concerning potential breaches of fiduciary duties by certain officers and directors was announced.
Investors who purchased shares of Ocwen Financial Corp (NYSE:OCN) in 2011 or earlier and currently hold any of those NYSE:OCN shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm concerns, among other things, whether certain Ocwen Financial officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Ocwen Financial Corporation is a financial services holding company that is engaged in the servicing and origination of mortgage loans. Its executive Chairman of the board is Mr. William Erbey. Ocwen Financial Corp reported that its annual Total Revenue rose from $360.38 million in 2010 to over $2.03 billion in 2013 and that its Net Income increased from $37.98 million in 2010 to $282.13 million in 2013. Shares of Ocwen Financial Corp (NYSE:OCN) grew from $8.76 per share in October 2010 to as high as $59.97 per share in October 2013.
In December 2013, the Consumer Financial Protection Bureau ("CFPB") and authorities in 49 states sued Ocwen Financial Corporation, accusing it of years of "significant and systemic misconduct that occurred at every stage of the mortgage servicing process."
Ocwen Financial Corporation reached an agreement under which it is required to provide $2 billion in loan modification relief to homeowners over three years and $127.3 million to a consumer relief fund.
On February 27, 2014 an article was published that stated that state and federal regulators are concerned that Ocwen Financial Corp is mishandling some of the mortgages it now services, citing examples of shoddy paperwork and faulty technology. In addition, the article said that regulators are also questioning the unusual arrangements between Ocwen Financial Corp and four other publicly traded companies where Mr. Erbey is chairman.
On April 28, 2014, Ocwen Financial Corporation received a letter from the staff of the New York Regional Office of the SEC informing it that staff of the New York Regional Office of the SEC was conducting an investigation relating to Ocwen Financial Corporation and making a request for voluntary production of documents and information relating to the April 22, 2014 surrender of certain options to purchase Ocwen Financial Corporation common stock by Mr. Erbey, including the 2007 Equity Incentive Plan and the related option grant and surrender documents.
Since October 2013 NYSE:OCN shares declined to as low as $31.71 per share on May 7, 2014.
On May 23, 2014, NYSE:OCN shares closed at $33.95 per share.
Those who purchased shares of certain Ocwen Financial Corp have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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