| Company: | Lender Processing Services, Inc. |
| Ticker Symbol: | LPS |
| Class Period: | Jul-29-09 to Oct-4-10 |
| Date Filed: | Dec-10-10 |
| Lead Plaintiff Deadline: | Feb-8-11 |
| Court: | Middle District of Florida |
| Allegations: | |
The action, pending in the United States District Court for the Middle District of Florida, was brought against Lender Processing and certain of its officers and directors for violations of the Securities Exchange Act of 1934. Lender Processing, headquartered in Jacksonville, Florida, describes itself as the mortgage industry's number one provider of mortgage processing services, settlement services and default solutions, and the nation's leading provider of integrated data, servicing and technology solutions for mortgage lenders.
The action alleges that during the Class Period, defendants made material misrepresentations and omissions regarding Lender Processing's business practices, financial condition, and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company engaged in improper and deceptive business practices; (ii) that the Company's subsidiary, Docx, falsified documents through the use of "robo signers"; (iii) that the Company engaged in improper fee sharing arrangements with attorneys and/or law firms; (iv) as a result of the its deceptive business practices, the Company's reported financial results and financial outlook lacked any reasonable basis in fact and were materially false and misleading.
On October 4, 2010, in response to negative media reports and government investigations of the Company relating to possible forged foreclosure documents it provided to mortgage lenders, Lender Processing issued a press release commenting on purported "mischaracterizations of its services." As a result, the market learned that Lender Processing's business practices were potentially deceptive and fraudulent, causing its stock price, which had already declined significantly from its Class Period high of $43.99 in October 2009, to fall an additional $2.72 per share, or 8.6 percent, on October 4, 2010 to close at $28.76 per share. On the following day, the price of Lender Processing stock fell another $1.45 per share, or 5 percent, 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.
