| Company: | Lender Processing Services Inc, |
| Ticker Symbol: | LPS |
| Class Period: | Jul-29-09 to Oct-4-10 |
| Date Filed: | Jan-12-11 |
| Lead Plaintiff Deadline: | Mar-13-11 |
| Court: | Middle District of Florida |
| Allegations: | |
In recent months, various government investigations and media reports on mortgage service companies have exposed an industry that increasingly relied on deceptive and fraudulent business practices, including the use of so-called "robo-signers" that falsified mortgage ownership documents. Lender Processing Services, Inc., a mortgage servicer based in Jacksonville, Florida, is one of the companies facing government scrutiny. In connection with the Florida Attorney General's investigation into the Company, former Florida AG Bill McCollum has indicated that LPS and other similar companies have produced "numerous documents in foreclosure cases that appear to be fabricated." As a result of the rampant use of these and other unscrupulous business practices, investors have suffered millions of dollars in losses.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company had engaged in improper and deceptive business practices; (ii) that a subsidiary of LPS, Docx, had been falsifying mortgage documents through the use of "robo-signers"; (iii) that the Company had engaged in improper fee sharing arrangements with foreclosure law firms, including the use of undisclosed contractual arrangements for impermissible legal fee splitting, which are camouflaged as various types of fees; and (iv) that as a result of the Company's deceptive business practices, LPS reported materially false and misleading financial results.
On October 4, 2010, after continued media reports and various government investigations calling into question LPS's default-related services that it provides to mortgage lenders, the market price of LPS stock fell $2.72, or 8.6% per share, to close at $28.76 per share. The price of LPS stock fell another $1.45, or 5.04%, on October 5, 2010, to close at $27.31 per share, on unusually heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
