NEW YORK, July 25, 2013 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Middle District of Florida on behalf of all those who purchased securities of Walter Investment Management Corporation (NYSE: WAC) ("Walter Investment" or the "Company") between May 9, 2012 and June 6, 2013, inclusive (the "Class Period").
Walter Investment is a loan servicer and business solutions provider focused on generating recurring, fee-based revenues from an "asset-light" platform. The Company specializes in offering creative, structured solutions to owners of less-than-prime, non-conforming and other credit-challenged mortgage assets.
The Complaint alleges that throughout the Class Period, Defendants made 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: (1) the Company lacked adequate internal controls over financial accounting; (2) the Company's internal controls were not effective; (3) the Company's financial statements contained false and misleading statements; (4) the Company had failed to disclose material weaknesses in the internal controls of its recent acquisition, Reverse Mortgage Solutions, Inc. ("RMS"); (5) the Company had overstated the value of RMS; and (6) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.On March 18, 2013, the Company disclosed that, based on an evaluation by the Company's Board of Directors and management, "our management, including our Chief Executive Officer and our Chief Financial Officer, has identified a material weakness in our internal control over financial reporting. As a result of this material weakness, management has concluded that, as of the end of the period covered by this Annual Report on Form 10-K, our internal control over financial reporting was not effective." On this news, the Company's shares fell $8.61 per share or over 20% percent to close at $32.98 per share on March 19, 2013. On June 6, 2013, the Company reported that, "[s]ubsequent to the completion of the RMS Acquisition, the Company discovered a failure to record certain estimated liabilities to investors relating to servicing errors by RMS." The Company concluded after preliminary review that RMS' historical financial statements, and the related reports of RMS' historical independent registered public accounting firm "should no longer be relied upon." Plaintiffs seek to recover damages on behalf of all Class members who invested in Walter securities during the Class Period. If you invested in Walter securities as described above during the Class Period, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than September 23, 2013. 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 Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.