The Shareholders Foundation announces an investigation on behalf of investors in Altisource Residential Corp (NYSE:RESI) shares was initiated over potential breaches of fiduciary duties by certain officers and directors at Altisource Residential Corp.
Investors who purchased shares of Altisource Residential Corp (NYSE:RESI) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain Altisource Residential officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Altisource Residential Corp owns and manages single-family rental properties, primarily through the acquisition of sub-performing and non-performing loan portfolios.
According to the investigation Altisource Asset Management Corp (NYSEMKT:AAMC) is the asset manager for Altisource Residential Corp and is controlled by Altisource Residential Corp’s chairman, William Erbey. Altisource Asset Management Corp’s management team serves as both asset managers and executives of Altisource Residential Corp.
On March 19, 2014, a report was published asserting that Altisource Residential Corp significantly overpays Altisource Asset Management Corp, four to seven times above the market price, to manage Altisource Residential Corp’s assets and that there is a clear conflict of interest in the asset management agreement since Altisource Asset Management Corp’s management is also serving as senior executives of Altisource Residential Corp.
The investigation concerns whether Altisource Residential Corp’s Board breached its fiduciary duties in connection with the incentive fees Altisource Residential Corp agreed to pay Altisource Asset Management Corp pursuant to their asset management agreement.
On April 1 2014, NYSE:RESI shares closed at $31.57 per share.
Those who purchased shares of certain Altisource Residential Corp have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com