First American Financial Corp.
Lead Plaintiff Deadline: 12/24/2020
SUMMARY OF CASE:
A securities class action has been filed against First American Financial Corp. (FAF) on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired the publicly traded securities of First American between February 17, 2017 through October 22, 2020. This case has been filed in the USDC – C.D.CA.
The Complaint alleges that on May 24, 2019, Brian Krebs of krebsonsecurity.com published a report alleging that First American may have allowed unauthorized access to more than 885 million records related to mortgage deals going back to 2003. According to report, First American said that it learned of a “design defect in one of its production applications that made possible unauthorized access to customer data” and has shut down external access. On this news, First American’s shares fell $3.46 per share, or 6%, to close at $51.80 per share.
Then, on October 22, 2020, First American announced that it had received a Wells Notice from the U.S. Securities and Exchange Commission “informing the Company that the enforcement staff has made a preliminary determination to recommend a filing of an enforcement action[.]” The Wells Notice was related to the earlier security breach.
On this news the price of First American shares fell $4.83 per share, or 9%, to close at $46.75 per share on October 22, 2020.