SOURCE: Saxena White P.A.

February 13, 2015 15:45 ET

Saxena White P.A. Files Securities Fraud Class Action Against Home Loan Servicing Solutions, Ltd.

BOCA RATON, FL--(Marketwired - Feb 13, 2015) -  Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Southern District of New York against Home Loan Servicing Solutions, Ltd. ("HLSS" or the "Company") (NASDAQ: HLSS) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from February 28, 2012 through January 22, 2015 (the "Class Period). 

HLSS acquires mortgage servicing assets. The Company invests primarily in sub-prime and Alt-A mortgage servicing rights and associated servicing advances, and hires residential loan servicers to service the pools of mortgage loans underlying the mortgage servicing rights. 

HLSS launched its operations in March 2012 with the proceeds from an initial public offering and a concurrent private placement to acquire a $15.2 billion mortgage servicing assets portfolio from Ocwen Financial Corporation ("Ocwen"). The private placement was facilitated by the Company's founder and former Chairman Defendant William C. Erbey, who until recently was also the Chairman of the Board of Directors for Ocwen. 

The existence of HLSS is dependent on its relationship with Ocwen. Ocwen is a financial services company engaged in the servicing and origination of mortgage loans, including standard residential and commercial servicing, special servicing, and asset management services. Ocwen owns a large loan portfolio consisting of conventional, government insured, and non-agency loans, including a large number of subprime loans. 

The Complaint brings forth claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects.

Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (i) that due to HLSS's dependency on Ocwen, any wrongful conduct on the part of Ocwen would directly affect HLSS; (ii) material information regarding illegal practices and various compliance failures in Ocwen's servicing business; (iii) material information regarding improper conflicted transactions with Ocwen; (iv) that the Company lacked adequate internal and financial controls; (v) that 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; (vi) the Company was in breach of provisions of its notes held by BlueMountain Capital Management, LLC; (vii) the Company faced material risks if it defaults on its notes, and (viii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

You may obtain a copy of the Complaint and join the class action at www.saxenawhite.com

If you purchased HLSS stock between February 28, 2012 and January 22, 2015, inclusive, you may contact Lester Hooker (lhooker@saxenawhite.com) at Saxena White P.A. to discuss your rights and interests.

If you purchased HLSS common stock during the Class Period of February 28, 2012 through January 22, 2015, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than March 30, 2015. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.

Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.

Lester R. Hooker, Esq.
lhooker@saxenawhite.com

Contact Information

  • Saxena White P.A.
    5200 Town Center Circle, Suite 601
    Boca Raton, FL 33486
    Tel: (561) 206-6708
    Fax: (866) 290-1291
    www.saxenawhite.com