SHAREHOLDER CLASS ACTION TO BE FILED AGAINST LPS, DOCX

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

ANOTHER CASE TO WATCH: When this class action is filed, it will contain allegations and details you probably didn’t know. Like the other class actions and AG actions across the country, make the effort to follow what is in the record. The position of the pretender lenders and documents fabricators changes depending upon who is suing them and what causes of action are in the lawsuit.

By watching the court file and the pleadings and responses and memorandums of law from BOTH sides, you will find material you can use in your own case. This is especially true if the class action is against a defendant that is the same entity that claims to have standing in your case. Any action or allegation or representation by counsel may be used as an admission against interest in your own case, which, if accepted by the Court, is presumptively true.

Lender Processing Services, Inc.

  • Issue: Securities fraud

Introduction

Lieff Cabraser Heimann & Bernstein, LLP is investigating potential illegal conduct as alleged in a class action lawsuit brought on behalf of all persons who purchased or acquired the common stock of Lender Processing Services, Inc. (“Lender Processing” or the “Company”) (NYSE: LPS) between July 29, 2009 and October 4, 2010, inclusive (the “Class Period”).

Background on Lender Processing Services, Inc. Securities Class Litigation

The action, pending in the United States District Court for the Middle District of Florida, was brought against Lender Processing and certain of its officers and directors for violations of the Securities Exchange Act of 1934. Lender Processing, headquartered in Jacksonville, Florida, describes itself as the mortgage industry’s number one provider of mortgage processing services, settlement services and default solutions, and the nation’s leading provider of integrated data, servicing and technology solutions for mortgage lenders.

The action alleges that during the Class Period, defendants made material misrepresentations and omissions regarding Lender Processing’s business practices, financial condition, and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company engaged in improper and deceptive business practices; (ii) that the Company’s subsidiary, Docx, falsified documents through the use of “robo signers”; (iii) that the Company engaged in improper fee sharing arrangements with attorneys and/or law firms; (iv) as a result of the its deceptive business practices, the Company’s reported financial results and financial outlook lacked any reasonable basis in fact and were materially false and misleading.

On October 4, 2010, in response to negative media reports and government investigations of the Company relating to possible forged foreclosure documents it provided to mortgage lenders, Lender Processing issued a press release commenting on purported “mischaracterizations of its services.” As a result, the market learned that Lender Processing’s business practices were potentially deceptive and fraudulent, causing its stock price, which had already declined significantly from its Class Period high of $43.99 in October 2009, to fall an additional $2.72 per share, or 8.6 percent, on October 4, 2010 to close at $28.76 per share. On the following day, the price of Lender Processing stock fell another $1.45 per share, or 5 percent, to close at $27.31 per share, on unusually heavy trading volume.

Contact Lieff Cabraser

If you purchased Lender Processing securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 24, 2011. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in this action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in this action.

If you are a Lender Processing shareholder and you would like Lieff Cabraser to review your claim, please click here to contact a securities attorney at Lieff Cabraser or contact securities attorney Sharon M. Lee by telephone toll-free at (800) 541-7358.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.

Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years.

Michael H. Simmons

11 Responses

  1. http://www.scribd.com/doc/46772075/Request-for-Judicial-Notice-CALIFORNIA-SUPERIOR-COURT-NOTICE-OF-FEDERAL-ORDER-With-Order-Inc-090697-Filed-1-12-11

    JUDICIAL NOTICE OF ORDER FROM FEDERAL JUDGE THAT ONEWEST AND ONEWEST AS AGENT FOR DEUTSCHE BANK HAVE NO STANDING. WONDER WHAT THE STATE JUDGE WILL THINK, SINCE HE DENIED THE TRO AS NOT AN EMERGENCY.

  2. brian davies

    Love it.

  3. NEXT SERVING SHOE TO DROP
    FROM MORTGAGE ORIGINATION NEWS

    We heard an interesting story the other day about poor servicing practices on payment option ARMs and the Internal Revenue Service. The story, not yet confirmed, goes like this: a servicer down in Texas is processing POA loans, improperly reporting to the IRS how much interest a consumer is paying on his mortgage. Why might this be a problem? Answer: mortgage interest payments are tax deductible and if a servicer is incorrectly reporting interest paid that means the U.S. Treasury could be coming up a little short (or maybe getting paid too much) in revenue. Will this be the next ‘shoe to drop’ in the national mortgage servicing scandals? Will a powerful House or Senate Committee chairman take this issue by the horns and launch a full scale investigation into POA servicing practices? Don’t hold your breath…

  4. Please subscribe me to your email list. Thank you

  5. Please sign me up on your list. Unfortunately my email address was dropped.
    Thank you

  6. […] This post was mentioned on Twitter by USA Advocate. USA Advocate said: SHAREHOLDER CLASS ACTION TO BE FILED AGAINST LPS, DOCX: http://t.co/WeyAyi5 […]

  7. Pj,

    What we just did not know at the time!!!. Derivatives. So called (synthetic) resecurization of collection rights. And, — big piece of the pie.

  8. So Neidermeyer, what is all this talk about a “class period”?

  9. LPS looks to have IPO’s around Jan 2008 … They’re holding at around $30 ,, a prime short target with all we know about them …

  10. A bit confusing for the simple folk out here, did they have a IPO in 2009?

  11. I’ve been expecting this one.

Leave a Reply

%d bloggers like this: