Company Website:
http://www.robbinsarroyo.com
SAN DIEGO & TAMPA, Fla. -- (Business Wire)
Shareholder rights law firm Robbins Arroyo LLP announces
that a class action complaint was filed against Walter Investment
Management Corp. (NYSE: WAC) in the U.S. District Court for the Middle
District of Florida. The complaint is brought on behalf of all
purchasers of Walter securities between May 3, 2016 and March 13, 2017,
for alleged violations of the Securities Exchange Act of 1934 by
Walter's officers and directors. Walter operates as an independent
servicer and originator of mortgage loans, and a servicer of reverse
mortgage loans in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/walter-investment-management-corp-apr-17
Walter Accused of Failing to Implement Adequate Internal Controls
According to the complaint, Walter issued a series of filings with the
U.S. Securities and Exchange Commission ("SEC") containing false
information about the company's financial position. On February 29,
2016, Walter submitted its Form 10-K in which the company articulated
reassuring expectations for its recent rebranding and consolidation of
Ditech Financial. Specifically, Walter stated that the rebranding would
improve the company's recapture performance, and in a separate SEC
filing, acknowledged that Ditech's reorganization was intended to
improve efficiencies and profitability of its reverse mortgage business.
The complaint claims that Walter's statements were false and misleading
because Walter omitted pertinent facts concerning its financial
condition, including that: Ditech had a material weakness in its
internal control over operational processes, Walter therefore had
deficient internal controls over financial reporting, and Walter was
involved in fraudulent practices that violated the False Claims Act.
Walter's true financial condition was revealed on March 14, 2017, in the
company's Form 10-K for the fiscal year ended December 31, 2016, in
which Walter concluded there was "a material weakness in internal
controls over financial reporting related to operational processes
associated with Ditech Financial default servicing activities." The
report further detailed that Walter "did not design and maintain
effective controls" in connection with its business activities including
identifying and resolving foreclosure tax liens in a timely manner and
processing loans in bankruptcy status. Because of Walter's poor internal
controls, the company made several adjustments to reserves in the fourth
quarter of 2016 totaling $16.3 million. Additionally, Walter revealed
that one of its three operating segments, Reverse Mortgage Solutions,
received subpoenas on June 16, 2016 and January 12, 2017, from the
Office of Inspector General of the U.S. Department of Housing and Urban
Development for potential violations of the False Claims Act. On this
news, Walter's stock fell $1.05 per share, or 38.89%, to close at $1.65
per share on March 14, 2017.
Walter Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, LKandinov@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170413006238/en/
Contacts:
Robbins Arroyo LLP
Leonid Kandinov
(619) 525-3990 or Toll Free
(800) 350-6003
LKandinov@robbinsarroyo.com
www.robbinsarroyo.com
Source: Robbins Arroyo LLP
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