The Shareholders Foundation announces that an investor, who purchased shares of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), filed a lawsuit in the U.S. District Court for the Southern District of Florida over alleged violations of Federal Securities Laws by Altisource Portfolio Solutions S.A. in connection with certain allegedly false and misleading statements made between July 25, 2013 and August 4, 2014.
Investors who purchased shares of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) have certain options and for certain investors are short and strict deadlines running. Deadline: November 7, 2014. NASDAQ:ASPS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) common shares between July 25, 2013 and August 4, 2014, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that Defendants made allegedly false and/or misleading statements and/or failed to disclose material information regarding the Company’s allegedly improper business and operational practices including, among other things, the fact that Ocwen Financial Corporation (“Ocwen”), a financial services holding company of which Defendant William C. Erbey is Chairman of the Board, was funneling as much as $65 million in fees annually from already-distressed homeowners to Altisource Portfolio Solutions S.A. for minimal work; and that Defendant William C. Erbey, who owns approximately 27% of Altisource Portfolio Solutions S.A.’s shares outstanding, was directly involved in approving Altisource Portfolio Solutions S.A.’s conflicted transactions with Ocwen.
The plaintiff alleges that Defendants issued materially false and misleading statements and omitted material information from Altisource Portfolio Solutions S.A.’s public disclosures, which failed to disclose, among other things,
– that Altisource Portfolio Solutions S.A. was charging exorbitant fees to Ocwen to enable Defendants to funnel as much as $65 million in questionable fees, that despite public representations to the contrary, Defendant Erbey was personally involved in approving conflicted transactions with Altisource Portfolio Solutions S.A. and other related entities which he controlled,
– that Altisource Portfolio Solutions S.A. failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners,
– that Altisource Portfolio Solutions S.A.’s financial statements between July 25, 2013 and August 4, 2014were artificially inflated and did not provide a fair presentation of the Company’s finances and operations,
– that Altisource Portfolio Solutions S.A. lacked adequate internal and financial controls,
and
– that as a result of the above, Altisource Portfolio Solutions S.A.’s financial statements were materially false and misleading at all relevant times.
Altisource Portfolio Solutions S.A. reported that its annual Total Revenue rose from $301.38 million in 2010 to $768.36 million in 2013 and that its respective Net Income increased from $49.27 million to $129.97 million. Shares of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) grew from slightly over $22 per share in early 2010 to as high as $170.19 per share in December 2013. Since then NASDAQ:ASPS shares have lost significant value and declined to as low as $95.36 per share in May 2014.
Then on August 4, 2014, the New York’s Department of Financial Services disclosed that it was investigating whether Ocwen Financial Corp entered into improper transactions with affiliated entities. According to the New York’s Department of Financial Services, Ocwen Financial Corp entered into an arrangement with Altisource Portfolio Solutions S.A., whose executives have substantial ties to Ocwen Financial Corp, which raises concerns about whether such transactions were priced fairly and conducted at arm’s-length. Shares of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) declined from over $121 per share in late July 2014 to as low as $83.37 per share on August 8, 2014.
On September 22, 2014, NASDAQ:ASPS shares closed at $101.69 per share.
Those who purchased shares of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com