NEW YORK, April 4, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against Walter Investment Management Corporation ("Walter Investment" or the "Company") (NYSE: WAC) and certain of its officers. The class action, filed in United States District Court, Middle District of Florida, and docketed under 1:14-cv-20880, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Walter Investment securities between May 9, 2012 and February 26, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Walter Investment securities during the Class Period, you have until May 6, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Walter Investment is a loan servicer and business solutions provider focused on generating recurring, fee-based revenues from an "asset-light" platform.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company lacked adequate internal controls over financial accounting and compliance with applicable laws; (2) the Company's internal controls were not effective; (3) the Company's financial statements contained false and misleading statements; (4) the Company had failed to disclose material weaknesses in the internal controls of its recently acquired subsidiary, RMS; (5) the Company had overstated the value of its RMS acquisition; (6) the Company was in violation of applicable laws, rules and regulations; (7) the Company's business practices violated consumer financial protection laws, thereby jeopardizing future revenues and profits; and, (8) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On March 18, 2013, the Company shocked investors by disclosing that, based on an evaluation by the Company's Board of Directors and management, "our management, including our Chief Executive Officer and our Chief Financial Officer, has identified a material weakness in our internal control over financial reporting. As a result of this material weakness, management has concluded that, as of the end of the period covered by this Annual Report on Form 10-K, our internal control over financial reporting was not effective."
On this news, the Company's shares fell $8.61 per share to close on March 19, 2013 at $32.98 per share, a drop of over 20%.
On February 27, 2014, the Company announced in a Securities and Exchange Commission ("SEC") Form 8-K filing that the Federal Trade Commission ("FTC") issued a Civil Investigation Demand ("CID") to Green Tree Servicing LLC ("Green Tree"), a wholly owned subsidiary of the Company, requesting information on a broad range of subjects relating to the company's operations.
On this news, shares of Walter Investment fell from $28.28 to $25.90, more than 8%, on unusually heavy trading volume, on February 27, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP