CINCINNATI, Jul 21, 2010 (GlobeNewswire via COMTEX) — Notice is hereby given that a class action lawsuit was filed by the Cincinnati law firms of Strauss & Troy and Statman Harris & Eyrich on behalf of all persons who purchased the common stock of DJSP Enterprises, Inc. (“DJSP” or the “Company”) /quotes/comstock/15*!djsp/quotes/nls/djsp (DJSP5.12, -0.21, -3.94%) between March 16, 2010 and May 27, 2010, inclusive (the “Class Period”), and who suffered damages as a result. The action is pending in the United States District Court for the Southern District of Florida.
The Complaint alleges that during the Class Period, DJSP and certain of its officers and/or directors (the “Defendants”) violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements and failing to disclose adverse facts known to them regarding the Company’s business and financial results. As a result the stock traded at artificially inflated prices during the Class Period.
On March 16, 2010, DJSP informed the investing community that “…there is no stopping this inflow of continued defaults that we anticipate to go for another two or three years….foreclosure volumes through 2012 are expected to increase dramatically.” Then on May 27, 2010, DJSP shocked the market when it lowered its guidance for adjusted net income by $15 to $17 million and for adjusted EBIDTA by $18 to $22 million. On this news, the Company’s shares fell nearly 29%, opening on May 28, 2010 at $6.33 per share.
DJSP indicated that the lowered guidance was a result of (i) the foreclosure system conversion of one of its largest bank clients which resulted in a reduction in the referral of foreclosure files; and (ii) a temporary slowdown in foreclosures due to governmental intervention programs.
Plaintiffs seek to recover damages on behalf of all individuals and entities who purchased DJSP common stock during the Class Period. If you purchased common stock between March 16, 2010 and May 27, 2010, you may, no later than October 20, 2010, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of the class members. In order to be appointed lead plaintiff, the Court must determine that you meet certain legal requirements.
If you wish to review a copy of the Complaint, discuss this action, or have any questions, please contact Richard S. Wayne, Esq., or Thomas P. Glass, Esq., Strauss & Troy, 150 East Fourth Street, Cincinnati, Ohio 45202, 800-669-9341 or by e-mail at rswayne@strausstroy.com or tpglass@strausstroy.com; or Melinda Nenning, Esq., Statman, Harris & Eyrich, 3700 Carew Tower, 441 Vine Street, Cincinnati, Ohio 45202, (513) 345-8181 Ext. 3095, or by e-mail at mnenning@statmanharris.com.
The law firms of Strauss & Troy and Statman Harris & Eyrich are Cincinnati, Ohio law firms that have successfully represented shareholders in national securities class actions. For more information, visit Strauss & Troy’s website at http://www.strausstroy.com or Statman Harris & Eyrich’s website at http://www.statmanharris.com.
CONTACT: Strauss & Troy
Richard S. Wayne, Esq.
rswayne@strausstroy.com
Thomas P. Glass, Esq.
tpglass@strausstroy.com
800-669-9341
Statman, Harris & Eyrich
Melinda Nenning, Esq.
(513) 345-8181 Ext. 3095
mnenning@statmanharris.com
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
Cooper et al v. DJSP Enterprises, Inc. et al
Filed: July 20, 2010 as 0:2010cv61261 Updated: July 20, 2010 21:15:00
Plaintiffs: Neeraj Methi and Stan Cooper
Defendants: David J. Stern, DJSP Enterprises, Inc. and Kumar Gursahaney
Presiding Judge: William J. Zloch
Referring Judge: Robin S. Rosenbaum
Cause Of Action: Securities Exchange Act
Court: Eleventh Circuit > Florida > Southern District Court
Type: Other Statutes > Securities/Commodities…
After reading this, why don’t you take a hop over and take a listen to an audio recording of Mr. Stern at a recent DJSP Conference. Oh and Mr. Obama…According to Mr. Stern we will see historical levels of foreclosures going well into 2017 seems like “A Plan” for the future of whats to come?
“No matter what Obama rolls out, there is no stopping this inflow of continued defaults that we anticipate to go for another two or three years late behind that is the math of REO’s that need to be liquidated and at the end of the day, the cycle will start again. Well, foreclosure volumes through 2012 are expected to increase dramatically and remain at high levels going on till 2017″
It’s a little hard to listen to him because he sounds too excited and on helium but trust me it was close enough to what he says. I wonder if his “Clients” would be pleased to listen to this convo detailing what’s in store for the future?
He did say one thing that caught my attention…”there is 50,000 REO’s in Florida that are not in the system” or something like that…Go ahead and take a listen for yourself…I am not quite certain what to make of all this …if it’s even legal? Where is the Client-Attorney Privilege? http://www.americansunitedforjustice.org/Stern.html
TampaBay.com recently exposed how some foreclosure mills are striving with wealth. In particular one law firm in the Fort Lauderdale area.
Here is another ‘Mega Estate’ under a “CERTAIN TRUST AGREEMENT” c/o The Law Offices of David J. Stern, PA 900 S. Pine Island Rd., Suite 400, Plantation Florida 33324. This is not far from his other $15,000,000.00 dollar “Mega Estate” and his $5 million dollar Ft. Lauderdale Beach condo.
This Hillsborough Estate, like his Ft. Lauderdale Estate also features a tennis court. According to BCPA.net this double lot MEGA ESTATE was purchased for a combined total of $17,000,000.00 in 2008.
Mr. Stern’s ‘nonlegal’ company DJSP Enterprises, Inc recently filed their Form S-8 with the SEC. I wonder where all these SHARES are going?
This is the follow up to the latest Depositions posted on SFF taken from The Law Offices of David J. Sterns’ employees Cheryl Samons and Shannon Smith.
I wonder if this was disclosed on DJSP Enterprise’s Prospectus letting investors be aware of this below…
David James Stern, 801 S. University Drive, Ste. 500, Plantation, reprimanded for professional misconduct following an October 24 court order. (Admitted to practice: 1991) Prior to 1999, Stern’s law firm filed potentially misleading affidavits in connection with abstraction work performed for foreclosures handled by the firm. Stern used personnel employed by his law firm to do the abstracting work rather than employees of his title company.(Case no. SC02-1991)
His address is also 900 South Pine Island Road Ste 400, Plantation FL 33324
David J. Stern, whose law firm helps banks foreclose on homeowners, owns three boats and lives in this $15 million, 16,500-square-foot Fort Lauderdale home with a tennis court.
Continue reading the full story on this “Foreclosure Mill” here….TampaBay.com
Cheryl Samons is an employee of David Stern Firm in Plantation Florida. The mere fact that she is signing documents representing the grantor when the grantee is the client of her employer’s law firm leads to questions and concerns, but:
How can an unsigned legal document get notarized and witnessed? (St. Lucie County, FL)
Bank of America took over Countrywide on June 3, 2009. How can Countrywide assign a mortgage on April 28, 2010? (Palm Beach County, FL)
DJSP Enterprises Inc. (DJSP) appointed mortgage-industry veteran Richard D. Powers as president and chief operating officer, overseeing day-to-day operations of the Florida-based provider of mortgage and real-estate processing services.
Chairman and Chief Executive David J. Stern said Powers’ extensive industry experience complements DJSP’s efforts to be a leader in the “default-services sector and beyond.”
“His strong management experience will help shape DJSP as we continue to establish ourselves as a provider of services to the mortgage industry for the life of the loan,” said Stern, who had held the president’s post.
Mr. Powers most recently was head of real-estate services at Altisource Portfolio Solutions SA (ASPS). Previously he was an executive in the mortgage operations of GMAC LLC, which has dealt with billions of dollars of losses the past several years, and was president at KB Home’s (KBH) mortgage unit.
DJSP Enterprises Inc. has recently caught the attention of several high profile law firms.
On June 14, 2010 the class action law firm of Statman, Harris & Eyrich, LLC announced it was investigating DJSP Enterprises, Inc. (“DJSP” or the “Company”) (DJSP6.29, +0.04, +0.64%) for potential violations of state and federal securities laws. The affected stock was purchased between March 11, 2010 and May 27, 2010.
Then on June 28, 2010 Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) announced it has been investigating DJSP Enterprises (“DSJP” or the “Company”) (Symbol: DJSP) for potential violations of the federal securities laws. Investors who purchased Company securities since April 1, 2010 may be affected.
I am a Fort Lauderdale attorney. I get it! I am organizing a class action suit on behalf of Floridians who have lost their homes to foreclosure. I am looking for class members. To potentially qualify, one must have lost one’s home to foreclosure within the last three years; the plaintiff must have been represented by the Law Office of David J. Stern; and your mortgage must have included the standard MERS language.
You DO NOT want to be on this firms radar…they investigate Corporate Fraud and this is the 2nd firm to launch an investigation against DJSP Enterprises.
New York – May 28, 2010 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating DJSP Enterprises (“DSJP” or the “Company”) (Symbol: DJSP) for potential violations of the federal securities laws. Investors who purchased Company securities since April 1, 2010 may be affected.
On May 28, 2010, DJSP plunged by $2.59, or 29.2%, to $6.28 after the real-estate foreclosure services company posted weaker-than-expected first-quarter results and warned investors of a full-year earnings shortfall.
DJSP said it had a first-quarter adjusted profit of 35 cents a share, which was a nickel below the Thomson Reuters average estimate.
DJSP said that in April one of its largest bank clients initiated a foreclosure system conversion that cut the number of foreclosures. Because of the foreclosure system conversion and the U.S. government’s steps to prevent foreclosures, DJSP said it expects full-year earnings of $1.29 to $1.36 a share, which is below consensus. Volume topped 3.13 million shares, compared to the 50-day average daily volume of 190,000.
If you purchased DJSP publicly traded securities and would like to discuss our investigation, please e-mail us at mail@kaplanfox.com or contact:
Frederic S. Fox
Joel B. Strauss
Donald R. Hall
Hae Sung Nam
Jeffrey P. Campisi
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail address: mail@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
(415) 772-4700
Fax: (415) 772-4707
E-mail address: mail@kaplanfox.com
“I listened into the conference call. Lowered guidance in most situations comes from future problems down the pipeline. That isn’t the case this time. Lowered guidance this time is just a temporary setback. Company prices should be a discount of their future earnings — and in this case, the discrepancy between price and value appears to be fairly large right now. The main points:
In the Q&A section, someone yelled at David Stern for not disclosing this setback through an 8-K earlier. In my opinion, taking all things into consideration, David Stern has been making the right judgment calls. The future for foreclosure processing is brighter than ever.
There is currently a rumor circulating suggesting that foreclosure processing is being pushed back another thirty (30) days for mid-summer election purposes.
David Stern has been getting phone calls from his customers on a daily basis to make sure that DJSP has the capacity to handle a future ramp up in capacity.
Two of their largest customers are merging, and in my opinion, this is going to make Q2 and maybe the beginning of Q3 temporarily weak. That said, I would argue that DJSP is incredibly likely to continue working with this new merged entity and get the backlog of foreclosures that they have built up.
Fannie Mae (FNM) and Freddie Mac (FRE) have been touring the facilities to make sure that DJSP has the capacity to ramp up processing.
They are in the process of picking up a second REO customer in my opinion, but the time that it takes to ramp up here might push those earnings into Q1 2011 at this point.
Here is the example of this agent from Coldwell Banker who clearly states
“FannieMaeHomePath-Purchase this property for as little as 3% down. This property approved for HomePath Mortgage Financing. Approved for HomePath Renovation Mortgage Financing. Large 3 bedroom unit with two full baths. 2nd floor master suite has hardwood floors and a huge closet. Upgraded kitchen has granite countertops and cherry wood cabinets. Laundry Room. Fenced yard for added privacy.”
“REO Addendum not furnished until acceptance-See IMPORTANT attachments & Follow**Use FAR9 Contract-No Calls Please- EMAIL only: UNIT HAS NO APPLIANCES.”
Well here’s the catch, I got a sneak peek…read the last few sentences to discover the major RESPA VIOLATION among other serious issues.
I am sure Coldwell Banker would be estatic to see agents working in this fashion as well as Fannie Mae having their addendum crossed out in certain areas.
FL BROWARD COUNTY very own DJSP aka TOP FORECLOSURE FIRM Law Office of David J. Stern has alleged to have unloaded OVER 28% shares as it tanked!
CINCINNATI, Jun 14, 2010 (GlobeNewswire via COMTEX) — Attorney Advertising
The class action law firm of Statman, Harris & Eyrich, LLC announced today that it is investigating DJSP Enterprises, Inc. (“DJSP” or the “Company”) (DJSP6.29, +0.04, +0.64%) for potential violations of state and federal securities laws. The affected stock was purchased between March 11, 2010 and May 27, 2010.
As a direct result, on May 28, 2010, DJSP’s stock fell to $6.38 per share, a decline of over 28% on unusually high trading volume.
Shareholders who purchased DJSP stock between March 11, 2010 and May 27, 2010 may have a claim against the Company and are encouraged to contact attorney Melinda Nenning at (513) 658-8867 or mnenning@statmanharris.com for further information without any obligation or cost to you.
Statman, Harris & Eyrich, LLC has offices in Chicago, Illinois; Cincinnati, Ohio; and Dayton, Ohio. www.statmanharris.com
I guess now we know what may be happening…Stay tuned as I will be watching closely!
Investigation on behalf of investors in DJSP Enterprises, Inc (NASDAQ:DJSP) over possible securities laws violations – Contact the Shareholders Foundation, Inc
PRLog (Press Release) – Jun 01, 2010 – An investigation on behalf of investors in DJSP Enterprises, Inc (NASDAQ:DJSP) securities over possible violations of Federal Securities Laws by DJSP Enterprises was announced.
If you are an investor in DJSP Enterprises, Inc (NASDAQ:DJSP) securities, you have certain options and you should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 – 1554.
DJSP Enterprises, Inc., located in Plantation, Florida, through its subsidiary, DAL Group, LLC, engages in providing non-legal services supporting residential real estate foreclosure, other related legal actions, and lender owned real estate services in the United States. DJSP Enterprises, Inc reported in 2009 Total Revenue of $260.269million with a Net Income of $44.565million. According to the investigation by a law firm the investigation on behalf of investors in DJSP stock focuses on the following events. On May 28, 2010, DJSP Enterprises declined by $2.59, or 29.2%, to $6.28 after DJSP Enterprises posted weaker-than-expected first-quarter results and warned investors of a full-year earnings shortfall. DJSP Enterprises said it had a first-quarter adjusted profit of 35 cents a share, which was a nickel below the Thomson Reuters average estimate.
DJSP Enterprises said that in April one of its largest bank clients initiated a foreclosure system conversion that cut the number of foreclosures. Because of the foreclosure system conversion and the U.S. government’s steps to prevent foreclosures, DJSP Enterprises said it expects full-year earnings of $1.29 to $1.36 a share, which is below consensus. Volume topped 3.13 million shares, compared to the 50-day average daily volume of 190,000, so the investigation. Shares of DJSP Enterprises, Inc (DJSP) traded recently at $6.38 per share, down from its 52weekHigh of $13.65 per share.
Those who are investors in DJSP Enterprises, Inc (NASDAQ:DJSP) securities, you have certain options and you should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 – 1554.
# # #
The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
By RICHARD WILNER NYPost Last Updated: 1:03 AM, May 30, 2010 Posted: 1:03 AM, May 30, 2010
A new gold rush is sweeping the country — only this time the speculators are looking to get fat off the $4 billion home foreclosure industry by promising banks a streamlined and low-cost method to kick folks out of their homes. DinSFLA: Last time I heard the word “speculators” was in the CONDO BOOM!
In the last two years, as the mortgage meltdown intensified, four companies have gone public or filed papers to go public — each looking to get their hands on cash to help grow into a national powerhouse quickly to take advantage of the soft housing market.
Buying shares of these companies is like shorting the housing market — sort of giving the average investor a chance to be a mini-John Paulson, the hedge fund mogul who made billions betting against the housing market in 2007. There were roughly 2.9 million foreclosures in 2009 and there are currently 6 million homeowners 60 days or more delinquent on their mortgage.
The companies — DJSP Enterprises, which saw revenues grow 31 percent last year, Altisource Portfolio Solutions, which reported a 182 percent jump in profits last year, and Lender Processing Services, whose $2.4 billion in revenue was up 29 percent last year — each offer a technology platform that links mortgage lender clients on one end and law firms clients on the other.
A fourth company, Prommis Solutions, which swung to a $7.9 million profit in 2009 from a loss in 2008, recently filed papers to go public.
The four companies profit, in large part, from the high volume of mortgage defaults — collecting fees from banks for each referral and from law firms, which file the foreclosure actions. In fact, the companies warn that a turnaround in the housing market or additional mortgage-modification plans from Washington could chill their profits.
Last week, shares of DJSP Enterprises got slammed, falling 25 percent on Friday, to $6.46, a 52-week low, after the company lowered its guidance for 2010 in the wake of a drop in the number of foreclosures.
It’s a strange, new sector of the housing finance sector, where bad news for America fattens the bottom lines for these companies, and good news for beleaguered homeowners knocks the stuffing — and dollars — from their bottom lines.
fannie mae owned.bank property. property is vacant.all offers requiring financing must have preapproval letter.all cash offer require proof of fund(see attachement).this property is eligible for home path renovation mortgage-as little as 3% down.buyer must close with seller closing agent(david j. stern law offices,p.a).investors not eligible for first 15days.*for showing instr please read broker remarks* note:offers must be submitted using attachment.close by 30 june and receive extra 3.5% in closing cost
Looking further into this I noticed the following:
Still in the name of the owner
NOT named under any REO
Home last sold for 245K
Now listed at 120K
Here is the BIGGEST:
I found a Bank-owned packet for this “SPECIALLY SELECTED” Agent/BROKER in many other REO’s and in this package it states the following: (SEE ABOVE LINK PACKET)
9) Which title companies are the sellers and who do I make out the earnest money deposit to once offer is verbally accepted?
a. PLEASE LOOK ON MLX REMARKS FOR TITLE COMPANY. MLX WILL HAVE ONE OF THE FOLLOWING:
HERE IS same Agent/Broker for a FLORIDA DEFAULT LAW GROUP property:
THIS IS FANNIE MAE HOMEPATH PROPERTY.BANK OWNED.ALL OFFERS REQUIRING FINANCING MUST HAVE PREAPPROVAL LETTER. ALL CASH OFFERS REQUIRE PROOF OF FUNDS. THIS PROPERTY IS APPROVED FOR HOMEPATH AND HOMEPATH RENOVATION MORTGAGE FINANCING-AS LITTLE AS 3% DOWN,NO APPRAISAL OR MORTGAGE INSURANCE REQUIRED! ** FOR SHOWING INST PLEASE READ BROKER REMARKS** YOU MUST SUBMIT OFFER USING ATTACHMENT! INVESTORS NOT ELIGIBLE FOR FIRST 15DAYS.CLOSE BY JUNE 30 TO BE ELIGIBLE FOR EXTRA 3.5% SC.EMD: FL DEFAULT LAW GROUP.
Here is another same Agent/Broker forMARSHALL C. WATSON property:
FANNIE MAE OWNED.BANK PROPERTY. PROPERTY IS VACANT.ALL OFFERS REQUIRING FINANCING MUST HAVE PREAPPROVAL LETTER.ALL CASH OFFERS REQUIRE PROOF OF FUNDS(SEE ATTACHEMENT).THIS PROPERTY IS ELIGIBLE FOR HOME PATH RENOVATION MORTGAGE-AS LITTLE AS 3% DOWN.BUYER MUST CLOSE WITH SELLER CLOSING AGENT (LAW OFFICES OF MARSHALL C. WATSON).INVESTOR NOT ELIGIBLE FOR FIRST 15DAYS.*FOR SHOWING INSTR PLEASE READ BROKER REMARK* NOTE:OFFERS MUST BE SUBMITTED USING ATTACHMENT.CLOSE BY JUNE 30 TO GET 3.5% EXTRA IN CLOSING COST
Does the JUNE 30th Closing Day have any significance??
What “if” the BUYER selects their own Title company? Does this eliminate their chances of ever even being considered as a buyer?
Why even bother to state this?
Is this a way for the selected Agent/ Broker to find the buyer and discourage other agents or buyers from viewing?
Was this at all even necessary to state?
Is this verbiage to coerce agents to get a higher commission rather than pass down the incentive of 3.5% towards closing cost “if” under contract by 6/30?
Why do investors have to refrain from buying for the first 15 days?
Coercion (pronounced /ko???r??n/) is the practice of forcing another party to behave in an involuntary manner (whether through action or inaction) by use of threats, intimidation, trickery, or some other form of pressure or force. Such actions are used as leverage, to force the victim to act in the desired way. Coercion may involve the actual infliction of physical pain/injury or psychological harm in order to enhance the credibility of a threat. The threat of further harm may lead to the cooperation or obedience of the person being coerced. Torture is one of the most extreme examples of coercion i.e. severe pain is inflicted until the victim provides the desired information.
PLANTATION, Fla., May 27 /PRNewswire-FirstCall/ — DJSP Enterprises, Inc. (Nasdaq: DJSP, DJSPW, DJSPU), one of the largest providers of processing services for the mortgage and real estate industries in the United States, today announced financial results for the three months ending March 31, 2010.
First Quarter Financial Highlights
Total revenue for the quarter increased 30.1% to $71.6 million from $55.0 million in last year’s comparable period.
Excluding client costs, revenue from the quarter increased to $30.8 million from $30.0 million compared to same period last year.
Adjusted Net Income was $8.7 million for the first quarter or $0.35 per share.
– the adjusted net income would have increased by $732 thousand but for one time
interest on bridge financing and other expenses related to the transaction in which
the company acquired its processing operations
Adjusted EBITDA for the first quarter was $14.4 million.
Another area that should be investigated in the foreclosure mill process is the “process serving” Mills such as ProVest LLC.
I worked at ProVest for 7 months a few years ago, as jobs are scarce. There were some issues there of some of the servers just “drop serving” the summons, (just leaving at the door and saying they gave it directly) or Sewer serves, (saying it was served and they never even left at the door). A few borrowers obtained legal counsel and executed their rights, as they were never properly served, but there are probably more borrowers unaware they have been “had”.
If Improperly served, the court dates cannot be set.
Due to ProVest’s aggressive style, and high volume of work, it is possible many servers, not direct employees, were forced to do the serves this way due to the volume and ProVest’s unrealistic expectations. They wanted a serve within 10 days of it being filed at the court house. As an employee, server or not, if you did not meet their outrageous timeframes it provoked what I call “public floggings” of employees. Not a nice place to work.
ProVest does process serving for many of the foreclosure mills such as Stern and FDLG… And for the record, when I was there, a husband worked for FDLG, and the wife worked for ProVest…
So, if you want more dirt for your compaign, here it is.. Check to see if the borrowers were properly served.
Recent Comments