RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the Middle District of Florida on behalf of all persons or entities that purchased Walter Investment Management Corp. (“Walter” or the “Company”) (NYSE: WAC) securities between February 29, 2016 and March 13, 2017, inclusive (the “Class Period”).
Walter shareholders may, no later than May 15, 2017, move the Court for appointment as a lead plaintiff of the Class
Walter, a diversified mortgage banking firm, focuses primarily on the servicing and origination of residential loans in the United States. Among the Company’s subsidiaries is Ditech Financial (“Ditech”).
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s Ditech subsidiary had a material weakness in its internal control over operational processes; (ii) accordingly, the Company lacked effective internal controls over financial reporting; and (iii) as a result of the foregoing, Walter’s public statements were materially false and misleading at all relevant times.
On March 14, 2017, Walter filed its Annual Report on Form 10-K with the Securities and Exchange Commission, reporting the Company’s financial and operating results for the quarter and year ended December 31, 2016 (the “2016 10-K”). In the 2016 10-K, Walter disclosed that “[a]s 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.”
On this news, Walter’s share price fell $1.05, or 38.89%, to close at $1.65 on March 14, 2017.
If you are a member of the class, you may, no later than May 15, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.