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Glancy Prongay & Murray LLP Files Securities Class Action Lawsuit Against Ocwen Financial Corporation and Announces Expanded Class Period

ONIT

Glancy Prongay & Murray LLP Files Securities Class Action Lawsuit Against Ocwen Financial Corporation and Announces Expanded Class Period

Glancy Prongay & Murray LLP (“GPM”) announces an expanded class period in the class action lawsuit it has filed in the United States District Court for the Southern District of Florida on behalf of a class (the “Class”) consisting of persons and entities that acquired Ocwen Financial Corporation (“Ocwen” or the “Company”) (NYSE: OCN) securities between January 13, 2015, and April 20, 2017, inclusive (the “Class Period”). To obtain information or participate in the class action, please visit the Ocwen page on our website at www.glancylaw.com/case/ocwen-financial-corporation.

If you are a member of the Class described above, you may move the Court no later than June 20, 2017, to serve as lead plaintiff. Please contact Lesley Portnoy at 888-773-9224 or 310-201-9150, or at shareholders@glancylaw.com to discuss this matter.

On April 20, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a press release announcing that it was suing Ocwen and its subsidiaries for “failing borrowers at every stage of the mortgage servicing process.” Specifically, the CFPB claimed that “Ocwen’s years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their homes” and that Ocwen “botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance.” The CFPB also claimed that Ocwen “foreclosed on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers’ records.” On this news, the Company’s stock price declined $2.91 per share, or 53.8%, to close at $2.49 per share on April 20, 2017, on unusually heavy trading volume.

The complaint filed in this lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the Company loaded inaccurate information into its REALServicing proprietary system; (2) that the REALServicing system generated errors due to deficient programming; (3) that the Company wrongfully initiated foreclosure proceedings on at least 1,000 people, and wrongfully held foreclosure sales; (4) that the Company failed to appropriately credit payments made by numerous borrowers; (5) that the Company failed to send borrowers accurate periodic statements detailing the amount due, how payments were applied, total payments received, and other information, and failed to correct billing and payment errors; (6) that the Company botched basic tasks in managing escrow accounts; (7) that the Company failed to make timely insurance payments for home insurance premiums, causing the lapse of homeowners’ insurance coverage for more than 10,000 borrowers; (8) that the Company failed to cancel borrowers’ private mortgage insurance in a timely manner, causing consumers to overpay; (9) that the Company enrolled some consumers in add-on products through deceptive solicitations and without their consent; (10) that the Company mishandled accounts for successors-in-interest, or heirs, to a deceased borrower; (11) that the Company routinely failed to properly acknowledge and investigate complaints, or make necessary corrections; (12) that the Company failed to include complete and accurate borrower information when it sold its rights to service thousands of loans to new mortgage servicers; and (13) that, as a result of the foregoing, Defendants’ statements about Ocwen’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.

Follow us for updates on Twitter: twitter.com/GPM_LLP?lang=en.

If you purchased shares of Ocwen during the Class Period you may move the Court no later than June 20, 2017 to ask the Court to appoint you as lead plaintiff in this class action lawsuit. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action lawsuit. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to shareholders@glancylaw.com, or visit our website at www.glancylaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com



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