One of our biggest shorts, LPS is in big trouble. Again. Still. Lately. Late during Friday’s trading hours, this bombshell news hit, sending the stock down nearly 7%. The following snippet comes from Yves Smith at NakedCapitalism:
Former LPS Employees Allege 30% to 78% Error Rate in Borrower Mortgage Records, Contradicting Banker/Regulator Cover-Up
One investor said that every time he looked at corporate misconduct, “No matter how bad you think it is, it’s always worse”. Lender Processing Services is proving to be a classic illustration.
The City of St. Clair Shores Employees’ Retirement System is the lead plaintiff in a class action lawsuit against Lender LPS that was amended and expanded yesterday. The suit is against the company and its three top officers, charing them with violations of Federal securities laws with the intent of inflating the company’s revenues and stock price.
LPS’ stock is down fractionally again today, and more importantly, I think this one looks like it’s finally starting to break. The LPS stock chart is certainly looking “broken”. Look at how it has completely blasted through what little technical resistance there was in the high $20s:
Check out the rest here…