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Case Status:    DISMISSED    
On or around 02/10/2016 (Court's order of dismissal)

Filing Date: September 05, 2014

According to the law firm press release, Flagstar is the holding company for Flagstar Bank, FSB ("Flagstar Bank"). Flagstar Bank accepts deposits from the general public and originates or acquires residential mortgage loans. Flagstar Bank also originates consumer, commercial real estate, and non-real estate commercial loans and it operates predominantly in Michigan and Indiana, as well as throughout the United States.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects, performance, and compliance with federal law. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) dating back to 2011, the Company's loss mitigation practices and default servicing operations were not in compliance with various federal consumer financial laws promulgated by the Consumer Financial Protection Bureau ("CFPB"); (ii) the Company lacked proper internal controls; and (iii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

On August 26, 2014, the Company filed a Form 8-K with the Securities and Exchange Commission ("SEC"), announcing that it has begun settlement discussions with the CFPB over alleged violations of consumer finance laws dating back to 2011.

As a result of these allegations, an analyst at BTIG investment bank downgraded its rating on Flagstar to sell, noting that the "allegations raise questions regarding servicing operations amid uncertainty of potential rebound of its mortgage business."

On this news, Flagstar stock fell $0.83, or almost 4.5%, on unusually heavy trading volume, to close at $17.66 on August 27, 2014.

On February 10, 2016, the Court issued an Order granting Defendants' motion to dismiss.

COMPANY INFORMATION:

Sector: Financial
Industry: S&Ls/Savings Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FBC
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: E.D. Michigan
DOCKET #: 14-CV-13459
JUDGE: Hon. Bernard A. Friedman
DATE FILED: 09/05/2014
CLASS PERIOD START: 01/22/2014
CLASS PERIOD END: 08/26/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cafferty Clobes Meriwether & Sprengel LLP
    30 North LaSalle Street, Suite 3200, Cafferty Clobes Meriwether & Sprengel LLP, IL 60602
    734.769.2144 734.769.1207 ·
  2. 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: E.D. Michigan
DOCKET #: 14-CV-13459
JUDGE: Hon. Bernard A. Friedman
DATE FILED: 02/03/2015
CLASS PERIOD START: 10/22/2013
CLASS PERIOD END: 08/26/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cafferty Clobes Meriwether & Sprengel LLP
    30 North LaSalle Street, Suite 3200, Cafferty Clobes Meriwether & Sprengel LLP, IL 60602
    734.769.2144 734.769.1207 ·
  2. 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