Altisource Residential Corp (NYSE:RESI) Investor Investigation Concerning Potential Breaches Of Fiduciary Duties

If you purchased shares of Altisource Residential Corp (NYSE:RESI) shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Altisource Residential
Affected Securities: 
NYSE: RESI

June 23, 2013 (Update) - On June 23, 2014, reports surfaced that stated that Altisource Residential Corp was shut out of a distressed loan auction of 23,000 defaulted single-family loans with $3.9 billion in unpaid principle from the U.S. Department of Housing and Urban Development. Shares of Altisource Residential Corp (NYSE:RESI) declined from $28.90 per share on June 20, 2014, to as low as $25.49 per share during June 23, 2014.

March 25, 2014 (Shareholders Foundation) - An investigation on behalf of investors in Altisource Residential Corp (NYSE:RESI) shares was announced over potential breaches of fiduciary duties by certain officers and directors at Altisource Residential Corp.

The investigation by a law firm concerns whether certain Altisource Residential officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.

Altisource Residential Corp owns and manages single-family rental properties, primarily through the acquisition of sub-performing and non-performing loan portfolios.

According to the investigation Altisource Asset Management Corp (NYSEMKT:AAMC) is the asset manager for Altisource Residential Corp and is controlled by Altisource Residential Corp’s chairman, William Erbey. Altisource Asset Management Corp’s management team serves as both asset managers and executives of Altisource Residential Corp.

Altisource Residential Corp reported that Total Revenue of $71.61 million in 2013 and that iots Net Loss of $0.09 million in 2012 turned into a Net Income of $39.60 million in 2013.

Shares of Altisource Residential Corp (NYSE:RESI) grew from $15.50 per share in ealr 2013 to as high as $34.81 per share in January 2014.

On March 19, 2014, a report was published asserting that Altisource Residential Corp significantly overpays Altisource Asset Management Corp, four to seven times above the market price, to manage Altisource Residential Corp’s assets and that there is a clear conflict of interest in the asset management agreement since Altisource Asset Management Corp’s management is also serving as senior executives of Altisource Residential Corp.

The investigation concerns whether Altisource Residential Corp’s Board breached its fiduciary duties in connection with the incentive fees Altisource Residential Corp agreed to pay Altisource Asset Management Corp pursuant to their asset management agreement.

On March 25, 2014, NYSE:RESI shares closed at $31.11 per share.