Case Page

 

Case Status:    DISMISSED    
On or around 11/08/2007 (Stipulation and order of dismissal (voluntary dismissal))

Filing Date: March 17, 2006

According to the Company’s Form 10-K for the fiscal year ended December 31, 2007, in March and April 2006, several purported class actions were filed against us, our Chief Executive Officer and our former Chief Financial Officer in the U.S. District Court for the District of New Jersey. The plaintiffs sought to represent an alleged class consisting of all persons (other than our officers and Directors and their affiliates) who purchased our Common stock during certain time periods beginning March 15, 2005 in one case and May 12, 2005 in the other cases and ending March 1, 2006. The plaintiffs alleged, among other matters, that the defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Each of these purported class actions has since been voluntarily dismissed by the plaintiffs. Additionally, two derivative actions were filed in the U.S. District Court for the District of New Jersey against us, our former Chief Financial Officer and each member of our Board of Directors. Both of these derivative actions have since been voluntarily dismissed by the plaintiffs.

The Complaint alleges that defendants, PHH Corporation, its CEO and President and its CFO, violated federal securities laws by issuing a series of materially false statements. Specifically, defendants failed to disclose the following facts: (i) that PHH materially overstated its deferred tax assets, by tens of millions of dollars; (ii) that the Company's reported net income was materially overstated; (iii) that the Company's internal controls over financial reporting had material weaknesses, were not effective and adversely affected the Company's ability to record, process, summarize and report financial data; and (iv) as a result of the foregoing, the Company's reported results were materially inflated.

The complaint further alleges that on or around March 1, 2006, PHH issued a press release revealing that the Company's reported results were materially overstated, for the reasons discussed above, and that an ongoing accounting review would prevent it from timely filing with the SEC its annual report on Form 10-K. The Company also announced that it had replaced its Chief Financial Officer. On this news, the price of PHH common stock dropped from $28.73 per share on March 1, 2006 to $26 per share on March 2, 2006.

COMPANY INFORMATION:

Sector: Financial
Industry: Misc. Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PHH
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 06-CV-01302
JUDGE: Hon. Ann Marie Donio
DATE FILED: 03/17/2006
CLASS PERIOD START: 05/12/2005
CLASS PERIOD END: 03/01/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  2. The Brualdi Law Firm (New York)
    29 Broadway, Suite 2400, The Brualdi Law Firm (New York), NY 10006
    877.495.1187 212.952.0608 · rbrualdi@brualdilawfirm.com
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