Case Page

 

Case Status:    SETTLED
On or around 10/17/2016 (Court's order of dismissal)

Filing Date: July 24, 2013

According to the law firm press release, Walter Investment is a loan servicer and business solutions provider focused on generating recurring, fee-based revenues from an "asset-light" platform. The Company specializes in offering creative, structured solutions to owners of less-than-prime, non-conforming and other credit-challenged mortgage assets.

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 that: (1) the Company lacked adequate internal controls over financial accounting; (2) the Company's internal controls were not effective; (3) the Company's financial statements contained false and misleading statements; (4) the Company had failed to disclose material weaknesses in the internal controls of its recent acquisition Reverse Mortgage Solutions, Inc. ("RMS"); (5) the Company had overstated the value of RMS; and (6) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

On March 18, 2013, the Company shocked investors by disclosing that, based on an evaluation by the Company's Board of Directors and management, "our management, including our Chief Executive Officer and our Chief Financial Officer, has identified a material weakness in our internal control over financial reporting. As a result of this material weakness, management has concluded that, as of the end of the period covered by this Annual Report on Form 10-K, our internal control over financial reporting was not effective." On this news the Company's shares fell $8.61 per share or over 20% percent to close at $32.98 per share on March 19, 2013.

On June 6, 2013, the Company reported that, [s] "Subsequent to the completion of the RMS Acquisition, the Company discovered a failure to record certain estimated liabilities to investors relating to servicing errors by RMS." The Company concluded after preliminary review that RMS historical financial statements, and the related reports of RMS historical independent registered public accounting firm, "should no longer be relied upon."

The first filed action was voluntarily dismissed. However, a related action continues in the Southern District of Florida under docket 14-CV-20880.

On May 20, 2016, the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved on June 13. On October 17, 2016, the Court issued an Order granting final approval of the Settlement and dismissing this case.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WAC
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: S.D. Florida
DOCKET #: 13-CV-01916
JUDGE: Hon. James D. Whittemore
DATE FILED: 07/24/2013
CLASS PERIOD START: 05/09/2012
CLASS PERIOD END: 06/06/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 14-CV-20880
JUDGE: Hon. James D. Whittemore
DATE FILED: 07/10/2015
CLASS PERIOD START: 05/09/2012
CLASS PERIOD END: 08/11/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  2. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 · lrosen@rosenlegal.com
No Document Title Filing Date