Chairman and Chief Executive Officer of PennyMac Mortgage Investment Trust Under Scrutiny
SAN DIEGO and MOORPARK, Calif., July 3, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of PennyMac Mortgage Investment Trust (NYSE: PMT) (also referred to herein as the "REIT") breached their fiduciary duties to shareholders. PMT is a specialty finance company that, through its subsidiaries, invests primarily in residential mortgage loans and mortgage-related assets.
Robbins Arroyo Investigates Claims of Self-Dealing by PMT's Chairman and CEO
Robbins Arroyo is investigating claims of self-dealing by PMT's Chairman and CEO, Stanford L. Kurland. Specifically, the firm is investigating whether Kurland has benefited at PMT's expense through PennyMac Financial Services, Inc. ("PennyMac Financial Services"). PennyMac Financial Services earns large fees from PMT and uses the REIT to generate business opportunities for itself. In 2008, Kurland established PennyMac Financial Services of which he is currently Chairman, CEO, and owner of 11.5% of the company.
On February 7, 2013, PennyMac Financial Services filed a Registration Statement in connection with its Initial Public Offering. The statement revealed that PMT paid PennyMac Financial Services and its subsidiaries $96.7 million in 2012, a substantial increase from $8.6 million in 2010 and $23.4 million in 2011. Moreover, the REIT accounted for more than one-third of Financial Services' net revenue in 2012. The filing also states, "The members of our senior management team may have conflicts in allocating their time and services between our operations and the activities of PMT, the Investment Funds and other entities or accounts managed by us now or in the future."
Robbins Arroyo highlights that PMT shareholders have the option to pursue a shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/pennymac/
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SOURCE Robbins Arroyo LLP