NEW YORK, Jan. 30, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Home Loan Servicing Solutions Ltd. ("HLSS" or the "Company") (Nasdaq: HLSS ) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased HLSS securities between February 7, 2013 and January 23, 2015, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased HLSS securities during the Class Period, you have until March 30, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Home Loan Servicing Solutions, Ltd., through its subsidiaries, engages in the acquisition of mortgage servicing assets. Its mortgage servicing assets consists of servicing advances, mortgage servicing rights, rights to mortgage servicing rights, and other related assets.
The Complaint alleges that the Company made false and/or misleading statements and/or failed to disclose that: (i) the Company's business was dependent on Ocwen Financial Corporation ("Ocwen") and Ocwen conducting its business legally; (ii) the Company's business faced material risks and uncertainties due to the systemic internal control weaknesses at Ocwen; (iii) Ocwen was under investigation for violating applicable federal and state regulations and laws, including among other things, the New York Department of Financial Services' and the state of California's investigation of Ocwen; (iv) the Company was in breach of provisions of its notes held by BlueMountain Capital Management, LLC; and (v) the Company faced material risks if it defaults on its notes. The suit claims that when the truth was revealed, it caused the price of the Company's stock to drop, damaging investors.
On December 22, 2014, HLSS filed a Form 8-K with the SEC with a press release stating that Defendant William C. Erbey was stepping down as Director and Chairman of HLSS effective January 16, 2015 and Robert J. McGinnis would be the new Chairman. On the news of Defendant Erbey's resignation, shares in HLSS securities fell $1.02, or about 4.89%, to a closing price of $19.83 on December 22, 2014.
On January 13, 2015, it was revealed in an article published by Investor's Business Daily that California regulators were seeking to suspend Ocwen's mortgage license. On this news, HLSS shares fell $3.14, or about 19.51%, to a closing price of $12.95 on January 13, 2015.
On January 23, 2015, BlueMountain Capital Management, LLC sent a notice of default to HLSS and Ocwen on certain notes HLSS serviced. Due to recent regulatory sanctions against Ocwen, which also has an impact on HLSS, it constituted a breach and a default under the terms of the leading agreement. On this news, HLSS shares fell $1.59, or more than 10.35% to close at $13.76 on January 23, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
Robert S. Willoughby Pomerantz LLP
