Robbins LLP Is Investigating the Officers and Directors of Altisource Residential Corporation on Behalf of Shareholders
Robbins LLP is investigating whether certain officers and directors of the property owner and management company Altisource Residential Corporation (NYSE: RESI) breached their fiduciary duties to shareholders.
View the investigation on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/altisource-residential-corp
Altisource Residential Urged to Terminate Asset Management Agreement
On March 19, 2014, Glaucus Research published an article on Seeking Alpha challenging the fees paid by Altisource Residential to the company’s asset manager, Altisource Asset Management Corporation (“AAMC”). Altisource Residential pays a quarterly “incentive fee” to AAMC for managing the company’s portfolio of non-performing mortgages and foreclosed single-family homes. According to the Glaucus Research article, in the fourth quarter of 2013, AAMC received an incentive fee equal to 32% of Altisource Residential’s dividends paid to shareholders. That incentive fee is estimated to be four to seven times greater than the compensation similar asset managers receive. In addition, the article indicates that AAMC’s management has a conflict of interest as it serves as the asset manager for Altisource Residential and shares certain executives with the company. Moreover, both Altisource Residential and AAMC are run by the same Chairman, William C. Erbey.
In light of this news, Robbins LLP is investigating whether Altisource Residential’s board of directors breached its fiduciary duties to shareholders by failing to adequately protect shareholders in negotiating its asset management agreement with AAMC.
Altisource Residential Shareholders Have Legal Options
Robbins LLP highlights that Altisource Residential shareholders have the option to pursue a shareholder litigation demand or shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company.
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.