The Shareholders Foundation announced that an investor in NYSE:NSM shares filed a lawsuit over alleged violations of Federal Securities Laws by Nationstar Mortgage Holdings Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Nationstar Mortgage Holdings Inc (NYSE:NSM) have certain options and for certain investors are short and strict deadlines running. Deadline: August 3, 2015. NYSE:NSM investors should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Nationstar Mortgage Holdings Inc (NYSE:NSM) common shares between February 27, 2014 and May 4, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 27, 2014 and May 4, 2015 defendants issued allegedly materially false and misleading statements about Nationstar Mortgage Holdings’ business, future revenues, operating results and financial prospects.
The plaintiff says that Nationstar Mortgage Holdings claimed to be improving its profitability as a result
of increased servicing revenue on its exponentially expanding mortgage servicing rights portfolio, leading to 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 plaintiff alleges that Nationstar Mortgage Holdings failed to disclose deficiencies inmanagement control and supervision necessary to ensure the Company’s compliance with applicable laws and regulations in connection with the servicing of mortgage servicing rights, and that Nationstar had been gouging mortgagors and illegally enhancing its profits through illicit practices, such as charging for repeated, unnecessary inspections, which resulted in additional late payment fees, and pressuring mortgagors to carry out expensive modifications and refinances on their mortgages.
In addition, the plaintiff claims that heightened regulatory scrutiny into mortgage servicing rights transferring and servicing, including a probe into Nationstar’s own loan servicing practices launched by the New York State Department of Financial Services in March 2014, was significantly increasing Nationstar’s costs of servicing mortgage servicing rights and diminishing the profitability and carrying value of the Company’s mortgage servicing rights portfolio, and that Defendants’ allegedly false and misleading statements and omissions regarding Nationstar Mortgage Holdings’ business, future revenues, operating results and financial prospects issued between February 27, 2014 and May 4, 2015 caused Nationstar Mortgage Holdings Inc common stock to trade at allegedly artificially inflated prices of as high as $38 per share.
The plaintiff alleges that due to a series of partial disclosures in late 2014 the price of Nationstar Mortgage Holdings common stock began to decline, beginning with a November 6, 2014 report of declining third quarter 2014 financial results, followed in January 2015 with Nationstar Mortgage Holdings’ being named as a defendant in a class action lawsuit brought in federal court in the Southern District of Florida on behalf of mortgagors alleging racketeering in connection with the collection of unlawful inspection fees.
The plaintiff says that Nationstar Mortgage Holdings’ stock price declined further on a February 26, 2015 report of dismal fourth quarter and fiscal 2014 financial results, and even further when Nationstar Mortgage Holdings priced a March 25, 2015 equity offering well below market.
On May 5, 2015, before the market opened, Nationstar Mortgage Holdings Inc reported its first quarter 2015 financial results. Nationstar Mortgage Holdings Inc reported a net loss of $48.3 million, or ($0.53) per share, as the Company’s revenues fell 15% year-over-year. The plaintiff claims that much of the loss came from a $110 million ($0.77 per share) write-down on the value of Nationstar Mortgage Holdings’ mortgage servicing rights .Shares of Nationstar Mortgage Holdings Inc (NYSE:NSM) declined from as high as$57.45 per share in September 2013 to as low as $18.86 per share on May 6, 2015.
Those who purchased shares of Nationstar Mortgage Holdings Inc (NYSE:NSM) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com