Saxena White P.A. Files Securities Fraud Class Action against Ocwen Financial Corporation
Aug 13 14
Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Southern District of Florida against Ocwen Financial Corporation on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from May 2, 2013 through August 11, 2014. The complaint brings forth claims for violations of the Securities Exchange Act of 1934. The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose a myriad of material information regarding the company's improper business and operational practices including, among other things, the fact that Ocwen's mortgage servicing practices violated applicable regulations and laws; that the company's executives allowed related company Altisource Portfolio Solutions, S.A. - a company of which Defendant William C. Erbey, Ocwen's Chairman of the Board, owns approximately 27% of its shares outstanding -- to impose wholly unreasonable rates for services provided to Ocwen; and that Defendant William C. Erbey, along with other directors and officers, were directly involved in approving Ocwen's conflicted transactions with Altisource. In addition, the Company's financial results were artificially inflated during the Class Period, resulting in a restatement of the Company's financial results. Accordingly, Defendants issued materially false and misleading statements and omitted material information from Ocwen's public disclosures, which failed to disclose, among other things, that: Altisource was charging exorbitant fees to Ocwen to enable Defendants to funnel as much as $65 million in questionable fees; despite public representations to the contrary, Defendant Erbey was personally involved in approving conflicted transactions with Altisource and other related entities which he controlled; the company failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners; the company's financial statements during the Class Period were artificially inflated and did not provide a fair presentation of the company's finances and operations; the company lacked adequate internal and financial controls; and as a result of the above, the company's financial statements were materially false and misleading at all relevant times.
Ocwen Financial Corp. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014
Jul 31 14
Ocwen Financial Corp. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported total revenue of $553,074,000 compared to $544,812,000 a year ago. Income from operations was $207,611,000 compared to $170,016,000 a year ago. Income before income taxes was $77,177,000 compared to $87,510,000 a year ago. Net income was $67,012,000 compared to $76,721,000 a year ago. Net income attributable to the company stockholders was $66,955,000 compared to $76,721,000 a year ago. Net income attributable to the company common stockholders was $65,958,000 compared to $74,116,000 a year ago. Diluted earnings per share were $0.48 compared to $0.53 a year ago. Normalized income before income taxes was $110.2 million compared to $153.3 million a year ago.
For the six months, the company reported total revenue of $1,104,335,000 compared to $951,078,000 a year ago. Income from operations was $409,678,000 compared to $332,648,000 a year ago. Income before income taxes was $166,137,000 compared to $138,845,000 a year ago. Net income was $142,843,000 compared to $121,868,000 a year ago. Net income attributable to the company stockholders was $142,801,000 compared to $121,868,000 a year ago. Net income attributable to the company common stockholders was $140,807,000 compared to $116,692,000 a year ago. Diluted earnings per share were $1.02 compared to $0.84 a year ago.
Ocwen Financial Mulls Acquisitions
Jul 31 14
Ocwen Financial Corp. (NYSE:OCN) intends to pursue acquisitions. “Depending on the opportunity and the competitive environment, we would consider a combination of acquisitions or internal start-ups as a path to build the right platform with the right competitive advantages," Bill Erbey, Chairman of Ocwen Financial, said.