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INVESTOR ALERT: Class Action Lawsuit Against Home Loan Servicing Solutions, Ltd. Announced by Law Offices of Howard G. Smith
[January 30, 2015]

INVESTOR ALERT: Class Action Lawsuit Against Home Loan Servicing Solutions, Ltd. Announced by Law Offices of Howard G. Smith


Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Home Loan Servicing Solutions, Ltd. ("HLSS" or the "Company") (NASDAQ:HLSS) between February 7, 2013 and January 23, 2015, inclusive (the "Class Period").

HLSS engages in the acquisition of mortgage servicing assets, including servicing advances, mortgage servicing rights, rights to mortgage servicing rights, and other related assets. On December 22, 2014, the Company announced that William C. Erbey will be stepping down as non-executive Chairman of the Board of Directors of HLSS effective January 16, 2015. Erbey also stepped down from his post as executive chairman of Ocwen Financial Corporation following an investigation by New York State regulatory authorities that alleged conflicts of interests involving financia transactions involving Ocwen and related companies with financial ties to Ocwen, including HLSS.



The lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that HLSS's business was dependent on Ocwen and that Ocwen conduct its business legally; (2) material risks and uncertainties of HLSS's business due to systemic internal control weaknesses at Ocwen; (3) that Ocwen was under investigation for allegedly violating applicable federal and state regulations and laws; (4) that HLSS was in breach of provisions of its notes with BlueMountain Capital Management; and (5) material risks to the Company if it defaults on its notes.

On January 23, 2015, Forbes reported that BlueMountain Capital Management delivered a notice of default against HLSS Servicer Advance Receivables Trust on the notes BlueMountain Capital owns that were issued in connection the Trust, citing Ocwen's regulatory problems, among other recent actions, that "materially increase the risk of loss on the Notes that are collateralized by receivables affected by Ocwen's standing as a servicer." Following this news, shares of HLSS declined by $1.59 per share, closing at $13.76 on January 23, 2015, on extremely heavy trading volume.


If you are a member of the Class described above, you have until March 30, 2015, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to [email protected], or visit our website at http://www.howardsmithlaw.com.


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