NASDAQ GS
ASPS

Altisource Portfolio Solutions S.A.

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Altisource Portfolio Solutions S.A. (NASDAQ GS: ASPS)

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Southern District of Florida on behalf of all persons or entities that purchased the common stock of Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ GS: ASPS) between July 25, 2013 and August 4, 2014, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of Altisource during the Class Period, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.                

Altisource, together with its subsidiaries, is a premier marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries offering both distribution and content.  The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) Altisource was charging exorbitant fees to Ocwen Financial Corporation (“Ocwen”) to enable Defendants to funnel as much as $65 million in questionable fees; (2) despite public representations to the contrary, Defendant William C. Erbey (“Erbey”) was personally involved in approving conflicted transactions with Altisource and other related entities which he controlled; (3) 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; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period. 

According to the Complaint, on August 4, 2014, the New York Department of Financial Services (“NYDFS”) issued a letter to Ocwen, a financial services holding company of which Defendant Erbey is Chairman of the Board.  In the letter, the NYDFS stated that it was reviewing what it called “a troubling transaction” with Altisource relating to the provision of force-placed insurance which is “designed to funnel as much as $65 million in fees annually from already-distressed homeowners to Altisource for minimal work.”  Further, the letter went on to question “the role that Ocwen’s Executive Chairman William C. Erbey played in approving this arrangement” despite “Altisource’s public claims – including in SEC filings – that he recuses himself from decisions involving related companies.”

On this news, shares in Altisource plummeted more than 14%, closing at $88.65 per share on August 4, 2014, on unusually heavy trading volume.         

If you wish to serve as lead plaintiff, you must move the Court no later than November 7, 2014.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising.  Prior results do not guarantee a similar outcome.