The Shareholders Foundation announces that an investor, who purchased shares of Walter Investment Management Corp (NYSE:WAC), filed a lawsuit in the U.S. District Court for the Middle District of Florida over alleged violations of Federal Securities Laws by Walter Investment Management Corp in connection with certain allegedly false and misleading statements made between May 9, 2012 and February 26, 2014.
Investors who purchased a significant amount of shares of Walter Investment Management Corp (NYSE:WAC) have certain options and for certain investors are short and strict deadlines running. Deadline: May 6, 2014. NYSE:WAC investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Walter Investment Management Corp (NYSE:WAC) between May 9, 2012 and February 26, 2014, that Walter Investment Management Corp and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or failed to disclose that Walter Investment Management Corp lacked adequate internal controls over financial accounting and compliance with applicable laws, that Walter Investment Management Corp’s internal controls were not effective, that Walter Investment Management Corp’s financial statements contained false and misleading statements, that Walter Investment Management Corp had failed to disclose material weaknesses in the internal controls of its recently acquired subsidiary, RMS, that Walter Investment Management Corp had overstated the value of its RMS acquisition, that Walter Investment Management Corp was in violation of applicable laws, rules and regulations, that Walter Investment Management Corp’s business practices violated consumer financial protection laws, thereby jeopardizing future revenues and profits, and that as a result of the foregoing, Walter Investment Management Corp’s statements were materially false and misleading at all relevant times.
On March 18, 2013, the Company disclosed that, based on an evaluation by the Company’s Board of Directors and management, “our management, including our Chief Executive Officer and our Chief Financial Officer, has identified a material weakness in our internal control over financial reporting. As a result of this material weakness, management has concluded that, as of the end of the period covered by this Annual Report on Form 10-K, our internal control over financial reporting was not effective.”
On February 27, 2014, Walter Investment Management Corp disclosed in filing with the SEC that In November 2010, the Federal Trade Commission (“FTC”) issued a Civil Investigation Demand (“CID”) to an unknown number of mortgage servicers, including Green Tree Servicing LLC (“Green Tree”), a wholly owned indirect subsidiary of Walter Investment Management, requesting information on a broad range of subjects relating to the companies’ operations. In November 2011, Green Tree received a Supplementary Discovery Request from the FTC seeking additional information. The Consumer Financial Protection Bureau (“CFPB”) began participating in the FTC’s investigation in April 2012. In September 2012, the CFPB issued CIDs to a number of mortgage servicers, including Green Tree, requesting information on a broad range of subjects relating to the companies’ mortgage servicing operations.
Walter Investment Management said that on October 7, 2013, the CFPB notified Green Tree, that the CFPB’s staff is considering recommending that the CFPB take action against Green Tree for alleged violations of various federal consumer financial laws and that on February 20, 2014, the FTC and CFPB staff advised Green Tree that it has sought authority to bring an enforcement action and negotiate a resolution related to alleged violations of various federal consumer financial laws.
Shares of Walter Investment Management Corp declined to $25.55 per share on February 28, 2014, which is significantly below its current 52 week High of $48.23 per share.
On March 28, 2014, NYSE:WAC shares closed at $28.86 per share.
Those who purchased shares of Walter Investment Management 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