Ocwen to pay $36 million to settle suit accusing it of lying to shareholders

Dec 04, 2017

In the latest blow for Ocwen Financial Corp., the embattled collector of mortgage payments said Monday that it will pay $36 million to settle a suit brought by a group of New Jersey investment funds.

In a federal suit filed in January 2016, Broadway Gate Master Fund of Summit, N.J., said it invested hundreds of millions of dollars in Ocwen shares based on “false and materially misleading statements” the company made.

Ocwen shares subsequently plunged when the West Palm Beach-based company acknowledged that it had misstated earnings for 2013 and part of 2014.

“While the company believes that it has sound legal and factual defenses, Ocwen agreed to this settlement in order to avoid the uncertain outcome of trial and the additional expense and demands on the time of its senior management that a trial would involve,” the company said in a statement.

MORE OCWEN COVERAGE

Ocwen enters mortgage settlement with 10 states

In sweet deal for billionaire chairman, Ocwen buys Bill Erbey’s house for $2 million premium

Ocwen chairman’s mansion still on market — two years after shareholders bought it for a hefty price

Former Ocwen Chairman Bill Erbey’s paper loss grows to $2.5 billion

Ocwen chair must resign in settlement with New York

Billionaire Wilbur Ross quits Ocwen board

Ocwen spinoff says federal agency considering enforcement action

What big peers you have! For CEO pay, Ocwen compares itself to large companies

Ocwen CEO’s pay nearly doubles in 2016