Altisource Portfolio Solutions to pay $32 million to settle class action suit over Ocwen relationship
Altisource Portfolio Solutions filed their 10-K annual filing with the Securities Exchange Commission this past week. Now they have revealed they will settle the lawsuit they are in for $32 million.
When Altisource Portfolio Solutions filed its 10-K yearly filing with the Securities and Exchange Commission earlier this week, the company revealed that the Consumer Financial Protection Bureau is looking into the company’s relationship with Ocwen Financial.
But that wasn’t the only Ocwen-related revelation in Altisource’s SEC filing.
The company also disclosed that it recently reached a $32 million settlement in a class action lawsuit brought by Altisource investors who claimed financial harm after Altisource’s stock plummeted after the New York Department of Financial Services began investigating the company’s relationship with Ocwen in early 2014.
The NYDFS investigation covered Ocwen’s relationship with several of its affiliated companies, all of which were chaired by Ocwen’s founder, William Erbey.
The investigation led to the NYDFS fining Ocwen $150 million and forcing Erbey to resign from his position as chairman of Ocwen and his position as chairman of several Ocwen affiliates, Altisource Portfolio Solutions, Altisource Residential Corporation, Altisource Asset Management Corporation, and Home Loan Servicing Solutions. read more… housingwire.com