According to the law firm press release, Ocwen is a diversified financial services holding company. The Company's primary businesses are the acquisition, servicing and resolution of sub-performing and nonperforming residential and commercial mortgage loans.
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 a myriad of material information regarding the Company's improper business and operational practices including, among other things, the fact that Ocwen's mortgage servicing practices violated applicable regulations and laws; that the Company's executives allowed related company Altisource Portfolio Solutions, S.A. ("Altisource") -- a company of which Defendant owns approximately 27% of its shares outstanding -- to impose wholly unreasonable rates for services provided to Ocwen; and that Defendant, along with other directors and officers, were directly involved in approving Ocwen's conflicted transactions with Altisource. In addition, the Company's financial results were artificially inflated during the Class Period, resulting in a restatement of the Company's financial results.
Accordingly, Defendants issued materially false and misleading statements and omitted material information from Ocwen's public disclosures, which failed to disclose, among other things, that: (i) Altisource was charging exorbitant fees to Ocwen to enable Defendants to funnel as much as $65 million in questionable fees; (ii) despite public representations to the contrary, Defendant was personally involved in approving conflicted transactions with Altisource and other related entities which he controlled; (iii) the Company failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners; (iv) the Company's financial statements during the Class Period were artificially inflated and did not provide a fair presentation of the Company's finances and operations; (v) the Company lacked adequate internal and financial controls; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On November 5, 2014, the Court issued an Order consolidating cases. Two days later, the Court issued an Order appointing lead plaintiff and lead counsel.
The parties filed a Stipulation of Settlement on August 16, 2017. Preliminary approval was granted on August 17.
The Court issued Orders awarding Attorneys' Fees and Expenses, approving the Plan of Allocation of the Settlement, and entering Final Judgment on December 22. On April 8, 2019, the Court issued an Order authorizing distribution of the net Settlement fund.