Altisource Residential Corporation (NYSE: RESI) Investor Securities Class Action Lawsuit 03/27/2015

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Company Name(s): 
Altisource Residential
Case Name: 
Altisource Residential Shareholder Class Action Lawsuit 03/27/2015
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: RESI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/27/2015
Class Period Begin: 
02/07/2013
Class Period End: 
01/23/2015
Court of Filing: 
U.S. District Court of the Virgin Islands
Deadline To File for Lead: 
05/26/2015
Summary: 

March 27, 2015 - An investor in shares of Altisource Residential Corporation (NYSE: RESI) filed a lawsuit in the U.S. District Court for the District of the Virgin Islands against Altisource Residential Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between February 7, 2013 and January 23, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Altisource Residential Corporation (NYSE: RESI) common shares between February 7, 2013 and January 23, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that Altisource Residential Corporation made false and/or misleading statements and/or failed to disclose the full scope of its reliance on Ocwen Financial Corporation, a related party and the risks relating to its relationship with Ocwen, and the full scope of its related party relationship with Altisource Asset Management Corporation. When the true details entered the market, Altisource Residential Corporation’s share price declined and investors suffered damages.

On February 26, 2014, the New York Department of Financial Services sent a letter to Ocwen Financial Corporation concerning a potential conflict of interest.

On March 19, 2014, a report was published that discussed concerns surrounding the relationship between Altisource Residential Corporation and Altisource Asset Management Corp.

On December 22, 2014, Altisource Residential announced that William C. Erbey would be stepping down as Chairman of the Board of Directors of Altisource Residential effective January 16, 2015. Erbey also stepped down from his post as executive chairman of Ocwen Financial Corporation following the investigation by New York State regulatory authorities that alleged conflicts of interests involving financial transactions involving Ocwen and related companies with financial ties to Ocwen, including Altisource Residential, Altisource Portfolio Solutions S.A. and Home Loan Servicing Solutions, Ltd.

On January 23, 2015, the California Department of Business Oversight entered into a settlement with Ocwen Financial Corporation to end the process of suspending Ocwen Financial’s mortgage license. On January 23, 2015 BlueMountain Capital Management, LLC, a hedge fund, sent Home Loan Servicing Solutions, Ltd and Ocwen Financial Corporation a notice of default on certain Notes issued in connection with Home Loan Servicing Solutions, Ltd Servicer Advance Receivables Trust.