Ocwen Financial Corporation
Period: May 11, 2015 to Apr 19, 2017
Lead Plaintiff Deadline: Jun 20, 2017
Summary of Case:
A securities class action has been filed against Ocwen Financial Corporation ("Ocwen" or the "Company") (NYSE:OCN) on behalf shareholder who purchased Ocwen securities between May 11, 2015 and April 19, 2017. This case has been filed in the USDC - FL (Southern).
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Ocwen engaged in significant and systemic misconduct at nearly every stage of the mortgage servicing process; (ii) the foregoing conduct, when it became known would subject the Company to heightened regulatory scrutiny and potential criminal sanctions; (iii) as a result of the foregoing, Ocwen's public statements were materially false and misleading at all relevant times.
On April 20, 2017, the U.S. Consumer Financial Protection Bureau issued a press release entitled "Consumer Financial Protection Bureau sues Ocwen for failing borrowers throughout mortgage servicing process," reporting that the Company had generated errors in borrowers' accounts, failed to credit payments, illegally foreclosed on homeowners, and charged borrowers for add-on products without their consent.
On that same day, it was further reported that the North Carolina Office of the Commissioner of Banks and state regulators from more than twenty states issued a cease-and-desist order to Ocwen's subsidiaries as a result of the Company's mishandling of consumer escrow accounts and a deficient financial condition. The Order "specifically prohibits the acquisition of new mortgage servicing rights and the origination of mortgage loans by Ocwen Loan Servicing (NMLS number 1852), a subsidiary of Ocwen, until the company is able to prove it can appropriately manage its consumer mortgage escrow accounts."
On this news, Ocwen's share price fell $2.91, or 53.89%, to close at $2.49 on April 20, 2017.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.