NEW YORK, Jan. 20, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Altisource Asset Management Corporation ("Altisource" or the "Company") (NYSE:AAMC) and certain of its officers. The class action, filed in United States District Court, District of the Virgin Islands, Division of St. Croix, is on behalf of a class consisting of all persons or entities who purchased Altisource securities between April 19, 2013 and January 12, 2015, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Altisource securities during the Class Period, you have until March 17, 2015 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 rswilloughby@pomlaw.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.
Altisource Asset Management Corporation provides asset management and corporate governance services for institutional investors in the United States. The company offers its services under a residential asset management agreement to Altisource Residential Corporation, which acquires and owns single-family rental assets. It also provides management services to NewSource Reinsurance Company Ltd, a title insurance and reinsurance company.
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 ("Ocwen"), all of which were founded by defendant William C. Erbey ("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 ("New York DFS"), defendant Erbey would be stepping down as chairman of Altisource'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, Altisource'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.
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 Altisource'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.
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.