Suit Filed Against LPS for Failure to Disclose Financial Conditions
Robbins Geller Rudman & Dowd LLP has announced that a class action suit has been commenced on behalf of an institutional investor in the United States District Court for the Middle District of Florida on behalf of purchasers of the common stock of Lender Processing Services Inc. between July 29, 2009 and Oct. 4, 2010, inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934. The complaint charges LPS and certain of its officers and executives with violations of the Exchange Act. LPS operates in the mortgage industry and is a provider of mortgage processing services, settlement services and default solutions. 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: ►That the company had engaged in improper and deceptive business practices; ►That the company's subsidiary, Docx, had been falsifying documents through the use of robo-signers; ►That the company had engaged in improper fee sharing arrangements with foreclosure attorneys and/or law firms, including, but not limited to, undisclosed contractual arrangements for impermissible legal fee splitting, which are camouflaged as various types of fees; ►As a result of the company's deceptive business practices, the company reported misleading financial results; and ►Further, as a result of the foregoing, at all relevant times, the company's financial outlook lacked a reasonable basis. On Oct. 4, 2010, in response to continued media reports and government investigations calling into question the company's default-related services that LPS provides to mortgage lenders and services, LPS issued a press release commenting on what it considered "mischaracterizations of its services." As a result, the market learned that LPS' business practices were potentially deceptive and fraudulent, causing the price of LPS stock to plummet an additional $2.72, or 8.6 percent per share, on Oct. 4, 2010, to close at $28.76 per share. The price of LPS stock fell another $1.45, or 5.04 percent, on Oct. 5, 2010, to close at $27.31 per share, on unusually heavy trading volume. The plaintiff seeks to recover damages on behalf of all purchasers of the common stock of LPS during the Class Period. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. For more information, visit www.rgrdlaw.com.