NEW YORK, May 10, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey against PHH Corporation (“PHH” or the “Company”) (NYSE:PHH) for violations of the Securities Exchange Act of 1934 on behalf of a class consisting of investors who purchased or otherwise acquired PHH securities on the open market and still hold their shares.
On February 27, 2018, PHH’s Board of Directors (the “Board”) caused the Company to enter into an agreement and plan of merger (the “Merger Agreement”) with Ocwen Financial Corporation (“Parent”) and POMS Corp (“Merger Sub,” and together with Parent, “Ocwen”). Pursuant to the terms of the Merger Agreement, stockholders of PHH will receive $11.00 in cash for each share of PHH they own. On April 27, 2018, the Company filed a proxy statement (the “Proxy Statement”) with the United States Securities and Exchange Commission (“SEC”) in connection with the Proposed Transaction. The Complaint alleges PHH and its Board violated securities laws and/or breached their fiduciary duties to the Company’s stockholders by (1) failing to conduct a fair sale process, (2) failing to disclose all material financial information as to the alleged benefits of the sale in advance of the shareholder meeting presently scheduled for June 11, 2018, and (3) not providing enough information for the shareholders to decide whether this proposed transaction undervalues the Company and if so, by how much.
If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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