Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Walter Investment Management Corp. (NYSE:WAC) in connection to alleged violations of securities laws by WAC and certain of its officers. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Walter Investment Management Corp. between May 3, 2016 and March 13, 2017.
The class action complaint specifically alleges that during the period in question, WAC and certain of its officers might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that internal controls governing certain operations procedures of WAC’s subsidiary, Ditech, were subject to a material weakness; that WAC did not have adequate controls over its financial reporting; and that as such the company’s statements to the public were false and misleading and/or had no reasonable foundation during the relevant period. The company filed an annual report on Form 10-k with the Securities and Exchange Commission on March 13, 2017, detailing WAC’s operational and financial results for the quarter and fiscal year ending December 31, 2016. The report stated that as of December 31, 2016, “we identified a material weakness in internal controls over operational processes within the transaction level processing of Ditech Financial default servicing activities.” After this news came to light, according to the lawsuit, WAC’s shares dropped in value, causing its investors to suffer harm.
According to the company’s website, Walter Investment Management Corp. is “a diversified mortgage banking firm focused primarily on servicing and originating residential loans, including reverse loans.” The description continues: “We service a wide array of loans across the credit spectrum for our own portfolio and for GSEs, government agencies, third-party securitization trusts and other credit owners. We originate and purchase residential loans that we predominantly sell to GSEs and government entities.”
A class action lawsuit has already been filed in connection with Walter Investment Management Corp. If you wish to serve as lead plaintiff in the WAC lawsuit, you must move the Court no later than May 15, 2017. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.