According to the law firm press release, the Complaint alleges that during the Class Period defendants misrepresented and/or concealed the Company's relationship with, and conflicted transactions with, a group of related companies, including Ocwen Financial Corporation, all of which were founded by Defendant. On December 22, 2014, the Company announced that as part of the terms of a settlement that Ocwen had reached with the New York Department of Financial Services (the "New York DFS"), Defendant would be stepping down as chairman of AAMC's board and from his positions at each of the related companies. As part of its investigation, the New York DFS indicated that it had uncovered "serious conflicts of interest between the Related Companies." As a result of this announcement, AAMC's stock price declined over 23% from a closing price of $465.30 per share on December 19, 2014 to close at $356.50 per share on December 22, 2014, on high trading volume. Then, on January 13, 2015, the California Department of Business Oversight announced that it was seeking to revoke Ocwen's license to operate in the state. On this news, the price of AAMC's stock fell over 33% from a closing price of $321.81 per share on January 12, 2015 to close at $214.27 per share on January 13, 2015, on high trading volume.
This case was ordered dismissed on April 6, 2017. Plaintiff filed a notice appealing the Court's Dismissal Order on July 7. On December 12, 2018, the Court of Appeals issued an Order affirming the ruling of the District Court.