Alleged Foreclosure Fraudulent Document Manufacturing Racket Now Faces Charges Of Federal Securities Law Violations; Suit Seeks Class Action Status

The law firm Robbins Geller Rudman & Dowd LLP announces:

• Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) [...] announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Middle District of Florida on behalf of purchasers of the common stock of Lender Processing Services, Inc. (“LPS” or the “Company”) between July 29, 2009 and October 4, 2010 (the "Class Period"), inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).(1)

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• The complaint charges LPS and certain of its officers and executives with violations of the Exchange Act. LPS operates in the mortgage industry and is the industry’s number one provider of mortgage processing services, settlement services and default solutions, and the nation’s leading provider of integrated data, servicing and technology solutions for mortgage lenders.

• The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose:
  
  (i) that the Company had engaged in improper and deceptive business practices;
  
  (ii) that the Company’s subsidiary Docx had been falsifying documents through the use of robo signers;
  
  (iii) that the Company had engaged in improper fee sharing arrangements with foreclosure attorneys and/or law firms, including, but not limited to, undisclosed contractual arrangements for impermissible legal fee splitting, which are camouflaged as various types of fees;
  
  (iv) as a result of the Company’s deceptive business practices, the Company reported misleading financial results; and
  
  (v) further, as a result of the foregoing, at all relevant times, the Company’s financial outlook lacked a reasonable basis.

For more, see Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Lender Processing Services, Inc.

For the lawsuit, see City of St. Clair Shores General Employees' Retirement System v. Lender Processing Services, Inc., et al.

Note: If you purchased LPS securities between July 29, 2009 and October 4, 2010, you may qualify to serve as a lead plaintiff in this action. To inquire about serving as lead plaintiff, see Notice of Opportunity to Serve as Lead Plaintiff.(2)

(1) Receiving prominent mention in the lawsuit is LPS' now-shuttered, notorious subsidiary, Docx.

(2) If you "sold short" shares of LPS stock (or stock in foreclosure mill attorney David J. Stern's DJSP Enterprises, for that matter) during the relevant period, you are to be congratulated for your keen foresight.