Cases

City of Cambridge Retirement System, v. Altisource Asset Management Corp., et al.

Court: District court of the Virgin Islands, Division of St. Croix
Case Contacts: Avi Josefson

Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) announced that it has filed a securities class action lawsuit on behalf of the City of Cambridge Retirement System against Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE: AAMC) and certain of the executive officers and directors of the Company.  The action, which was filed in the United States District Court of the Virgin Islands, asserts claims under the Securities Exchange Act of 1934 on behalf of investors in AAMC common stock during the period of April 19, 2013 to January 12, 2015, inclusive (the “Class Period”). 

The Complaint alleges that during the Class Period defendants misrepresented and/or concealed the Company’s relationship with, and conflicted transactions with, a group of related companies, including Ocwen Financial Corporation, all of which were founded by Defendant William Erbey.  On December 22, 2014, the Company announced that as part of the terms of a settlement that Ocwen had reached with the New York Department of Financial Services (the “New York DFS”), Defendant Erbey would be stepping down as chairman of AAMC’s board and from his positions at each of the related companies.  As part of its investigation, the New York DFS indicated that it had uncovered “serious conflicts of interest between the Related Companies.”  As a result of this announcement, AAMC’s stock price declined over 23% from a closing price of $465.30 per share on December 19, 2014 to close at $356.50 per share on December 22, 2014, on high trading volume.  Then, on January 13, 2015, the California Department of Business Oversight announced that it was seeking to revoke Ocwen’s license to operate in the state.  On this news, the price of AAMC’s stock fell over 33% from a closing price of $321.81 per share on January 12, 2015 to close at $214.27 per share on January 13, 2015, on high trading volume. 

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than 60 days from today.  Accordingly, the deadline for filing a motion for appointment as Lead Plaintiff is March 17, 2015.  Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.