The Shareholders Foundation announces that an investor, who purchased shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Home Loan Servicing Solutions Ltd in connection with certain allegedly false and misleading statements made between February 7, 2013 and January 23, 2015.
Investors who purchased shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) have certain options and for certain investors are short and strict deadlines running. Deadline: March 30, 2015. NASDAQ:HLSS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
Home Loan Servicing Solutions Ltd Limited is a development-stage company that was formed to acquire mortgage servicing assets consisting of mortgage servicing rights, rights to fees and other income from servicing mortgage loans, and associated servicing advances. Home Loan Servicing Solutions Ltd engaged Ocwen Financial Corp, a residential mortgage loan servicer, to service the mortgage loans underlying Home Loan Servicing Solutions Ltd Mortgage Servicing Assets.
According to the complaint the plaintiff alleges on behalf of purchasers of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) common shares between February 7, 2013 and January 23, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that Home Loan Servicing Solutions Ltd made allegedly false and/or misleading statements and/or allegedly failed to disclose that Home Loan Servicing Solutions Ltd’s business was dependent on Ocwen Financial Corp and Ocwen Financial Corp conducting its business legally, that Home Loan Servicing Solutions Ltd’s business faced material risks and uncertainties due to the systemic internal control weaknesses at Ocwen Financial Corp, that Ocwen Financial Corp was under investigation for violating applicable federal and state regulations and laws, including among other things, the New York Department of Financial Services’ and the state of California’s investigation of Ocwen Financial Corp, that Home Loan Servicing Solutions Ltd was in breach of provisions of its notes held by BlueMountain Capital Management, LLC, and that Home Loan Servicing Solutions Ltd faced material risks if it defaults on its notes.
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.
On December 22, 2014, Home Loan Servicing Solutions, Ltd. announced that William C. Erbey will be stepping down as non-executive Chairman of the Board of Directors of the Company effective January 16, 2015. Mr. Erbey also stepped down from his post as executive chairman of Ocwen Financial Corporation.
On January 23, 2015, a news outlet reported that BlueMountain Capital Management, LLC delivered a notice of default against Home Loan Servicing Solutions Servicer Advance Receivables Trust on notes issued by the Trust and owned by BlueMountain. In its notice of default, BlueMountain reportedly cited to Ocwen Finanical’s regulatory problems, among other recent actions, which “materially increase the risk of loss on the Notes that are collateralized by receivables affected by Ocwen’s standing as a servicer.”Shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) declined to as low as $11.92 per share on January 30, 2015.
On February 10, 2015, NASDAQ:HLSS shares closed at $15.61 per share.
Those who purchased shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) 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