[Read Complaint Below]
Saxena White P.A. Files Securities Fraud Class Action Against Lender Processing Services, Inc.
Boca Raton, January 12, 2011
Boca Raton, FL, January 12, 2011: In recent months, various government investigations and media reports on mortgage service companies have exposed an industry that increasingly relied on deceptive and fraudulent business practices, including the use of so-called “robo-signers” that falsified mortgage ownership documents. Lender Processing Services, Inc. (“LPS” or the “Company”), a mortgage servicer based in Jacksonville, Florida, is one of the companies facing government scrutiny.
In connection with the Florida Attorney General’s investigation into the Company, former Florida AG Bill McCollum has indicated that LPS and other similar companies have produced “numerous documents in foreclosure cases that appear to be fabricated.” As a result of the rampant use of these and other unscrupulous business practices, investors have suffered millions of dollars in losses.
Saxena White P.A. has filed a class action lawsuit for an institutional investor in the United States District Court for the Middle District of Florida on behalf of all investors who purchased LPS securities during the period between July 29, 2009 and October 4, 2010, inclusive (the “Class Period”), seeking to recover damages caused by defendants’ violations of the federal securities laws.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’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 a subsidiary of LPS, Docx, had been falsifying mortgage documents through the use of “robo-signers”; (iii) that the Company had engaged in improper fee sharing arrangements with foreclosure law firms, including the use of undisclosed contractual arrangements for impermissible legal fee splitting, which are camouflaged as various types of fees; and (iv) that as a result of the Company’s deceptive business practices, LPS reported materially false and misleading financial results.
On October 4, 2010, after continued media reports and various government investigations calling into question LPS’s default-related services that it provides to mortgage lenders, the market price of LPS stock fell $2.72, or 8.6% per share, 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.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased LPS stock between July 29, 2009 and October 4, 2010, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests:
Joseph E. White, III Greg Stone
Saxena White P.A.
2424 North Federal Highway, Suite 257
Boca Raton, FL 33431
Tel: (561) 394-3399
Fax: (561) 394-3382
If you purchased LPS shares during the Class Period and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than January 24, 2011. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., which has offices in Boca Raton, Boston and Montana, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.
Continue to complaint below…
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