NEW YORK, March 27, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the securities of Home Loan Servicing Solutions Ltd. ("Home Loan" or the "Company") (Nasdaq:HLSS) between February 7, 2013 and January 23, 2015, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's business was dependent on Ocwen Financial Corporation ("Ocwen") and Ocwen conducting its business legally; (ii) the Company's business faced material risks and uncertainties due to the systemic internal control weaknesses at Ocwen; (iii) Ocwen was under investigation for violating applicable federal and state regulations and laws, including among other things, the New York Department of Financial Services' and the state of California's investigation of Ocwen; (iv) the Company was in breach of provisions of its notes held by BlueMountain Capital Management, LLC; and (v) the Company faced material risks if it defaults on its notes.
On December 22, 2014, Home Loan issued a press release stating that Defendant William C. Erbey was stepping down as Director and Chairman of the Company effective January 16, 2015. On this news, the Company stock fell $1.02, or about 4.89%, to close at $19.83. Further, on January 13, 2015, it was revealed in an article published by Investor's Business Daily that California regulators were seeking to suspend Ocwen's mortgage license. On this news, Home Loan shares fell $3.14, or about 19.51%, to close at $12.95.
On January 23, 2015, BlueMountain Capital Management, LLC sent a notice of default to Home Loan and Ocwen on certain notes Home Loan serviced. Due to recent regulatory sanctions against Ocwen, which also has an impact on Home Loan, it constituted a breach and a default under the terms of the leading agreement. On this news, Home Loan shares fell $1.59, or more than 10.35% to close at $13.76.
If you wish to serve as lead plaintiff, you must move the Court no later than March 30, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or 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 email@example.com or firstname.lastname@example.org.