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SAN FRANCISCO, July 21, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors of the August 3, 2015 lead plaintiff deadline in the securities fraud class action lawsuit filed against Nationstar Mortgage Holdings Inc. (NYSE:NSM) (“Nationstar” or “the Company”). If you have losses in your investment in Nationstar during the Class Period contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000, emailing NSM@hbsslaw.com or visiting http://hb-securities.com/investigations/NSM.
The lawsuit, pending in U.S. District Court for the Southern District of Florida, is filed on behalf of investors who purchased Nationstar common stock between February 27, 2014 and May 4, 2015, inclusive, (the “Class Period”). No class has been certified in this case. The deadline to move for the position of lead plaintiff in the case is August 3, 2015.
Nationstar is the nation’s second largest non-bank subprime mortgage servicer. Its primary business is collecting mortgage premiums and otherwise servicing mortgages for loans owned by other entities. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements about the Company's business, future revenues, operating results and financial prospects. The Company claimed its profits were increasing because of increased servicing fee profits, and as a result of profits being "earned" by its Solutionstar subsidiary, with which it had contracted to provide various loan services.
The Complaint alleges, however, that Nationstar failed to disclose deficiencies in management control and supervision necessary to ensure the Company's compliance with applicable laws and regulations in connection with its mortgage servicing practices, and that Nationstar was reaping profits by engaging in practices that eventually led to a probe into Nationstar launched by the New York State Department of Financial Services in March 2014. As a result, Nationstar’s profitability suffered and the price of the Company’s common stock began to decline in late 2014, following a report of declining third quarter 2014 financial results.
Finally, on May 5, 2015, before the market opened, Nationstar issued disappointing first quarter 2015 financial results. Nationstar reported a net loss of $48.3 million, or ($0.53) per share, as the Company's revenues fell 15% year-over-year. Much of the loss came from a $110 million ($0.77 per share) write-down on the value of the Company's mortgage servicing rights. Following this series of partial disclosures, the price of Nationstar common stock fell, closing at $19.51 per share on May 5, 2015, nearly 50% below its Class Period high.
If you were negatively impacted by your investment in Nationstar between February 27, 2014 and May 4, 2015, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.
Whistleblowers: Persons with non-public information regarding Nationstar should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at (510) 725-3000 or email NSM@hbsslaw.com.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm headquartered in Seattle, Washington with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm’s Securities Newsletter at http://www.hb-securities.com/newsletter. The firm’s blog is located at www.meaningfuldisclosure.com.For the latest news from Hagens Berman, visit http://www.hbsslaw.com/newsroom or follow us on Twitter at @hagensberman.
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