Ocwen Financial Corporation Securities Litigation Website
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The information contained on this website is only a summary. More information regarding the Action is contained in the Notice of Pendency of Class Action (the “Notice”). You may download a copy of the Notice by clicking here.

The Class:

On November 17, 2016, the Court entered an Order certifying the following Class:

All persons and entities who purchased or otherwise acquired Ocwen Financial Corporation common stock from May 2, 2013 through December 19, 2014, inclusive (the “Class Period”), and were damaged thereby.

Excluded from the Class are the following:

Defendants and members of Defendants’ immediate families (as defined in 17 C.F.R. § 229.404, Instructions (1)(a)(iii) and (1)(b)(ii)), any person, firm, trust, corporation, officer, director, or other individual or entity in which any Defendant has or had a controlling interest, or which is related to or affiliated with any Defendant, and the legal representatives, agents, affiliates, heirs, successors-in-interest, or assigns of any such excluded party.

Description and Status of the Action:

This is a securities class action against Defendants for alleged violations of the federal securities laws during the Class Period. Class Representatives allege that Defendants issued misrepresentations and omissions during the Class Period regarding Ocwen’s compliance with regulations imposed upon Ocwen by, inter alia, the New York Department of Financial Services and the National Mortgage Settlement and in connection with Ocwen’s related party policies, practices and procedures over its transactions with entities affiliated with Defendant William C. Erbey.  Defendants deny all of the allegations of wrongdoing asserted in the Action and deny any liability whatsoever to any members of the Class.

Beginning in August 2014, several putative securities fraud class actions were filed in this Court against Ocwen and certain of its officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b) and 78t(a), and Rule 10b-5, promulgated thereunder, 17 C.F.R. § 240.10b-5.

By Order dated November 5, 2014, the Court consolidated these actions under Case No. 14-CIV-81057-DIMITROULEAS (DE 41).  By Order dated November 7, 2014, the Court appointed Sjunde AP-Fonden as Lead Plaintiff, pursuant to the Private Securities Litigation Reform Act of 1995, and approved Sjunde AP-Fonden’s selection of counsel, Kessler Topaz Meltzer & Check, LLP, as Lead Counsel (DE 42).

On December 8, 2014, Lead Plaintiff filed its Consolidated Class Action Complaint (DE 49).  Thereafter, on February 6, 2015, with the consent of Defendants and approval of the Court, Lead Plaintiff filed its Consolidated Amended Class Action Complaint (DE 60) (“Amended Complaint”) to include certain additional facts which came to light following the filing of the previous complaint.

Defendants moved to dismiss the Amended Complaint on March 23, 2015 (DE 63).  Defendants’ motion was fully briefed, and by Order dated September 4, 2015 (DE 70), the Court granted Defendants’ motion and dismissed the Amended Complaint without prejudice.  By the same Order, the Court granted Lead Plaintiff leave to file an amended complaint.  On September 25, 2015, Lead Plaintiff filed its Consolidated Second Amended Class Action Complaint (DE 71) (“Second Amended Complaint”).

Following the filing of the Second Amended Complaint, the United States Securities and Exchange Commission filed Release No. 76074 against Home Loan Servicing Solutions (“HLSS”), finding that Erbey, in his capacity as Chairman of both Ocwen and HLSS, participated in approving certain transactions between Ocwen and HLSS during 2012-2014.  With Defendants’ consent, on October 13, 2015, Lead Plaintiff filed the operative complaint in the Action, the Consolidated Third Amended Class Action Complaint (DE 74) (“Third Amended Complaint”) to incorporate this new information. 

Defendants moved to dismiss the Third Amended Complaint on October 27, 2015 (DE 78).  Defendants’ motion was fully briefed, and by Order dated December 22, 2015, the Court granted in part and denied in part Defendants’ motion (DE 81).  Thereafter, on January 22, 2016, Defendants filed their Answer to the Third Amended Complaint (DE 84), denying all surviving allegations of the Third Amended Complaint and asserting certain defenses.

Thereafter, the parties embarked on discovery.  While discovery was ongoing, Lead Plaintiff, on August 12, 2016, filed its motion for class certification (DE 112), which Defendants opposed on October 11, 2016 (DE 123).  On November 17, 2016, the Court issued an Order granting Lead Plaintiff’s motion, certifying the Class, appointing Lead Plaintiff Sjunde AP-Fonden and additional named plaintiff Jay E. Thren as Class Representatives, and appointing Lead Counsel Kessler Topaz Meltzer & Check, LLP as Class Counsel (DE 158).  The Court’s Order certifying the Class does not guarantee Class Members will receive money or benefits; that will be decided later in the lawsuit.

No court has made a ruling on the merits of Class Representatives’ allegations or on Defendants’ denials and defenses.  The litigation is ongoing.

Additional information regarding the Action and the claims asserted by Class Representatives can be found in the Notice and in the operative complaint.  The operative complaint – the Third Amended Complaint, can be viewed and downloaded from the “Court Documents” page of this website.


YOUR LEGAL RIGHTS AND OPTIONS:

DO NOTHING AND REMAIN IN THE CLASS 

If you purchased or otherwise acquired Ocwen common stock from May 2, 2013, through December 19, 2014, inclusive, and were damaged thereby, and you are not excluded by definition from the Class, you are a member of the Class. 

If you choose to remain a member of the Class, you are not required to do anything at this time.

You will be bound by all past, present, and future orders and judgments in the Action, whether favorable or unfavorable. If any money is awarded to the Class, either through a settlement with Defendants or a judgment of the Court after a trial, you may be eligible to receive a share of that award.

If you remain a member of the Class, you may not pursue a lawsuit on your own behalf with regard to any of the issues in this Action. Pursuant to Rule 23(e)(4) of the Federal Rules of Civil Procedure, it is within the Court’s discretion whether to allow a second opportunity to request exclusion from the Class if there is a settlement or judgment in the Action after a trial.

Additional information regarding the rights of Class Members is included in paragraphs 14 through 16 of the Notice.

EXCLUDE YOURSELF FROM THE CLASS BY SUBMITTING A REQUEST FOR EXCLUSION POSTMARKED NO LATER THAN MARCH 20, 2017

If you choose to be excluded from the Class, you will not be bound by any orders or judgments in this Action, nor will you be eligible to share in any recovery that might be obtained in this Action.

You will retain any right you have to individually pursue any legal rights that you may have against any Defendants with respect to the claims asserted in the Action.

Further information regarding the requirements for submitting a valid request for exclusion from the Class is included in paragraphs 17 through 20 of the Notice.

Do not request exclusion if you wish to participate in the Action as a Class Member.



Class Counsel:

As a Class Member, you will be represented by Class Counsel:

Sharan Nirmul, Esq.
Richard A. Russo, Jr., Esq.
KESSLER TOPAZ MELTZER
& CHECK, LLP
280 King of Prussia Road
Radnor, PA  19087
Telephone: 610-667-7706
Facsimile: 610-667-7056
www.ktmc.com


Although the Court has appointed attorneys to represent the Class, you have the right to retain your own personal counsel at your own expense. However, you are not required to retain separate counsel. If you do not retain separate counsel and remain a member of the Class, your interests will be represented by Class Counsel and by the representatives of the Class.  Additional information regarding the requirements, should you choose to retain your own personal counsel, is included in paragraph 15.a. of the Notice.

 
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