Please list your purchase and sale transaction(s) in the Nationstar Mortgage Holdings Inc. security that is subject of this action during the Class Period (between February 27, 2014 and May 4, 2015):
Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired shares of Nationstar Mortgage Holdings Inc. (NYSE: NSM) (“Nationstar”) between February 27, 2014 and May 4, 2015, inclusive (the “Class Period”).
According to the complaint, Nationstar is the nation's second largest non-bank subprime mortgage servicer. Nationstar collects mortgage premiums and services mortgages for loans owned by other entities.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements about the Company's business, future revenues, operating results and financial prospects. Nationstar claimed to be improving its profitability as a result of increased servicing revenue on its exponentially expanding MSR portfolio, leading to servicing fee profits, and as a result of profits being "earned" by its Solutionstar subsidiary, with which it had contracted to provide various loan services. However, Nationstar failed to disclose deficiencies in management control and supervision necessary to ensure the Company's compliance with applicable laws and regulations in connection with the servicing of MSRs, and that Nationstar had been gouging mortgagors and illegally enhancing its profits through illicit practices, such as charging for repeated, unnecessary inspections, which resulted in additional late payment fees, and pressuring mortgagors to carry out expensive modifications and refinances on their mortgages. In addition, heightened regulatory scrutiny into MSR transferring and servicing, including a probe into Nationstar's own loan servicing practices launched by the New York State Department of Financial Services in March 2014, was significantly increasing Nationstar's costs of servicing MSRs and diminishing the profitability and carrying value of the Company's MSR portfolio. Defendants' false and misleading statements and omissions regarding the Company's business, future revenues, operating results and financial prospects issued during the Class Period caused Nationstar common stock to trade at artificially inflated prices of as high as $38 per share.
The complaint alleges that due to a series of partial disclosures in late 2014 the price of Nationstar common stock began to decline, beginning with a November 6, 2014 report of declining third quarter 2014 financial results, followed in January 2015 with Nationstar being named as a defendant in a class action brought in federal court in the Southern District of Florida on behalf of mortgagors alleging racketeering in connection with the collection of unlawful inspection fees. Nationstar's stock price declined further on a February 26, 2015 report of dismal fourth quarter and fiscal 2014 financial results, and even further when the Company priced a March 25, 2015 equity offering well below market. Then on May 5, 2015, before the market opened, Nationstar issued disappointing first quarter 2015 financial results. Nationstar reported a net loss of $48.3 million, or ($0.53) per share, as the Company's revenues fell 15% year-over-year. Much of the loss came from a $110 million ($0.77 per share) write-down on the value of the Company's MSRs. Following this series of partial disclosures, the price of Nationstar common stock fell, closing at $19.51 per share on May 5, 2015, nearly 50% below its Class Period high.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706