Lender Processing Services, Inc. (NYSE: LPS) Long Term Investor Filed Lawsuit over Alleged Wrongdoing by Directors

A lawsuit is pending by a current long term investor in shares of Lender Processing Services, Inc. (NYSE: LPS) over alleged breaches of fiduciary duties and other NYSE: LPS stockholders should contact the Shareholders Foundation.

San Diego, CA — (SBWIRE) — 02/13/2012 — The Shareholders Foundation announces that an investor in NYSE: LPS shares filed a lawsuit against members of the Lender Processing Services’ board of directors over alleged breaches of fiduciary duties and breaches of good faith in connection with Lender Processing Services’ default operations.

Investors who are current long term investors in Lender Processing Services, Inc. (NYSE: LPS) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.

Between 2008 and 2010 the volume of foreclosures and bankruptcies increased dramatically. During that time automatically generated, unverified documents submitted in foreclosure and bankruptcy proceedings become known as the “robo-signing” foreclosure scandal of 2010.

The plaintiff alleges that that defendants breached their fiduciary duties and that the board of directors was made expressly aware of the issues with Docx, an LPS subsidiary, but did not end the robo-signing practice.

In early 2010 the U.S. Attorney’s office in the Middle District of Florida announced investigation s of Lender Processing Services, Inc and its subsidiary Docx, for their alleged improper use of allegedly false documents to foreclose on Florida homeowners.

The civil investigation focused on allegations that Lender Processing Services, Inc engaged in creating and manufacturing “bogus assignments’ of mortgage ownership in order to complete foreclosures quicker. Since then, other federal and state authorities, including various regulatory agencies, and other state attorneys general, have initiated inquiries about these matters, and additional agencies may do so in the future.

According to several media reports and various investigations Lender Processing Services’ default-related services division has also been accused of improperly splitting fees with attorneys, calling into question the source of a substantial portion of the company’s revenue.

In October 2010, after Lender Processing Services issued a press release commenting on what it considered “mischaracterizations of its services.” The price of LPS stock declined an additional $2.72, or 8.6% per share, on October 4, 2010, to close at $28.76 per share.

Lender Processing Services said that it discovered, during its own internal reviews, potential issues related to some of these practices which may cause the validity of certain documents used in foreclosure proceedings to be challenged.

The plaintiff alleges that in September and October of 2010, news articles across revealed that many of the automatically-generated documents used in judicial foreclosure proceedings and bankruptcies were improper and invalid and that the volume of Lender Processing Services documents filed in the wake of the financial crisis made clear that the paperwork was frequently automatically generated with very little, if any, factual investigation into whether the foreclosing entity had a legal right to foreclose on the property, and other facts critical to the proceedings.

The price of LPS stock fell another $1.45, or 5.04%, on October 5, 2010, to close at $27.31 per share, on unusually heavy trading volume.

Shares of Lender Processing Services, Inc. (LPS) traded on January 2012 as low as $14.40 per share and recently at under $20 per share.

Those who are current long term investors in Lender Processing Services, Inc. (NYSE: LPS) shares, have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

Source: Shareholders Foundation, Inc.

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