This is a securities fraud class action against Ocwen Financial Corporation (“Ocwen” or the “Company”) and certain of its officers. Ocwen is one of the largest mortgage service companies in the United States and specializes in the acquisition and servicing of loans of distressed borrowers. The class action, filed in the U.S. District Court, Southern District of Florida was filed on behalf of a class of investors who purchased or otherwise acquired Ocwen securities during the period of January 13, 2015 and April 19, 2017, (the “Class Period”) and are seeking to recover compensable damages suffered due to defendants’ violations of the Securities Exchange Act of 1934.
The action alleges that during the Class Period, Defendants made materially false and misleading statements regarding Ocwen’s business, operational, and compliance policies. Specifically, Ocwen failed to disclose that (i) it engaged in significant and systemic misconduct at nearly every stage of the mortgage servicing process; and (ii) that the foregoing conduct, when disclosed would subject Ocwen to heightened regulatory scrutiny and potentially criminal sanctions. This action was commenced following allegations made by the Consumer Financial Protection Bureau that Ocwen “improperly calculated loan balances, misapplied borrower payments, failed to correctly process escrow and insurance payments, and failed to properly investigate and make corrections in response to consumer complaints.”
Lead Plaintiff motions were filed on June 20, 2017. Four law firms were in contention to lead the proposed class action but ultimately, the Magistrate Judge James H. Hopkins appointed AF&T’s client, the University of Puerto Rico Retirement system, as Lead Plaintiff, and appointed AF&T as Lead Counsel.