Robbins LLP Is Investigating the Officers and Directors of Walter Investment Management Corp. (WAC) on Behalf of Shareholders
Robbins LLP is investigating whether certain officers and directors of Walter Investment Management Corp. (NYSE: WAC) breached their fiduciary duties to shareholders. Walter Investment provides business services to the residential mortgage industry in the United States.
Walter Investment’s History of Investigations and Litigation
Robbins LLP’s investigation focuses on whether Walter Investment’s board of directors breached its fiduciary duties to shareholders by failing to institute adequate internal controls over financial accounting and compliance within the company and its subsidiaries. The company is plagued by numerous federal investigations relating to its subsidiaries. Specifically, the Federal Trade Commission and Consumer Financial Protection Bureau are investigating Green Tree Servicing LLC’s alleged violations of federal consumer financial laws and have recommended an enforcement action relating to these violations. The Office of the United States Trustee and the California Attorney General are also investigating Green Tree’s business practices. Another subsidiary, Reverse Mortgage Solutions, Inc., received a subpoena from the Department of Housing and Urban Development, Office of the Inspector General, and is now the subject of an investigation by the Department of Justice. Additionally, the Internal Revenue Service is investigating Walter Energy concerning federal income tax issues.
Walter Investment is also the subject of a federal securities class action initiated by company shareholders alleging that defendants made false and misleading statements and/or failed to disclose the company’s lack of adequate internal controls, as well as failed to disclose the lack of internal controls of its recently acquired subsidiary, Reverse Mortgage Solutions, Inc.
Walter Investment once traded at a high of $48.33 per share. After filing its Form 10-K with the U.S. Securities and Exchange Commission in February 2014, the company’s stock declined to $25.55. The stock has continued to decline and is currently trading at $15.25.
Walter Investment Shareholders Have Legal Options
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.