On November 23, 2010, the complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company had engaged in improper and deceptive business practices; (ii) that the Company’s subsidiary Docx had been falsifying documents through the use of robo signers; (iii) that the Company had engaged in improper fee sharing arrangements with foreclosure attorneys and/or law firms, including, but not limited to, undisclosed contractual arrangements for impermissible legal fee splitting, which are camouflaged as various types of fees; (iv) as a result of the Company’s deceptive business practices, the Company reported misleading financial results; and (v) further, as a result of the foregoing, at all relevant times, the Company’s financial outlook lacked a reasonable basis.
On October 4, 2010, in response to continued media reports and government investigations calling into question the Company’s default-related services that LPS provides to mortgage lenders and services, LPS issued a press release commenting on what it considered “mischaracterizations of its services.” As a result, the market learned that LPS’ business practices were potentially deceptive and fraudulent, causing the price of LPS stock to plummet an additional $2.72, or 8.6% per share, on October 4, 2010, to close at $28.76 per share. The price of LPS stock fell another $1.45, or 5.04%, on October 5, 2010, to close at $27.31 per share, on unusually heavy trading volume.
On March 10, Judge Timothy J. Corrigan signed the Order appointing Baltimore County Employees Retirement System as lead plaintif and approving selection of Labaton Sucharow LLP and Robbins Geller Rudman & Dowd LLP as counsel. On May 18, 2011, the lead plaintiff filed an Amended Complaint.
On March 30, 2012, Judge Timothy J. Corrigan signed the Order granting defendants' motion to dismiss. Plaintiff's Amended Complaint was dismissed without prejudice, with leave to amend. On May 8, 2012, plaintiffs filed a second amended complaint. On October 5, 2012, the plaintiffs filed a third amended complaint.
On May 6, 2013, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on July 8.