CASES
Lender Processing Services, Inc.
Class Period: Jul 29, 2009 to Oct 4, 2010
Lead Plaintiff Deadline: Jan 24, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Lender Processing Services, Inc. (LPS) ("LPS" or the "Company") on behalf of all securities purchasers from July 29, 2009 through October 4, 2010, inclusive ("Class Period"), in the United States District Court for the Middle District of Florida.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about the LPS's true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company had engaged in improper and deceptive business practices; (ii) that the Company's subsidiary Docx had been falsifying documents through the use of robo signers; (iii) that the Company had engaged in improper fee sharing arrangements with foreclosure attorneys and/or law firms, including, but not limited to, undisclosed contractual arrangements for impermissible legal fee splitting, which are camouflaged as various types of fees; (iv) as a result of the Company's deceptive business practices, the Company reported misleading financial results; and (v) further, as a result of the foregoing, at all relevant times, the Company's financial outlook lacked a reasonable basis.
On October 4, 2010, in response to continued media reports and government investigations calling into question the Company's default-related services that LPS provides to mortgage lenders and services, LPS issued a press release commenting on what it considered "mischaracterizations of its services." As a result, the market learned that LPS' business practices were potentially deceptive and fraudulent, causing the price of LPS stock to plummet an additional $2.72, or 8.6% per share, on October 4, 2010, to close at $28.76 per share. The price of LPS stock fell another $1.45, or 5.04%, on October 5, 2010, to close at $27.31 per share, on unusually heavy trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.