Mortgage servicing company, Lender Processing Services, Inc., has agreed to pay $14 million to settle a class action lawsuit that claimed that the company mislead investors about improper practices underlying its business model, including the “robo-signing” of documents in connection with foreclosures. The lawsuit was brought on behalf of those people who purchased shares of stock in the publically traded company.
Following a series of disclosures about its allegedly improper business practices, Lender Processing’s stock fell 18 percent from April 2009 to October 2010.
Lender Processing also entered into a “non-prosecution” agreement with the U.S. Department of Justice and paid $35 million to settle an investigation into its mortgage document signing practices.
Geoffrey Broderick, the senior partner of the Resolution Law Group, says “while Lender Processing has settled with its shareholders, and they have dodged criminal prosecution for their shameful conduct, they still need to held accountable to the millions of homeowners they have harmed. “
Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature. Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners. Homeowners cannot expect the problem to fix itself.”
The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.
The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, visit its website at www.TheResolutionLawGroup.com
Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud