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Altisource Portfolio Solutions to Pay $32 Million to Settle Class Action Suit Over Ocwen Relationship

The company disclosed that it recently reached a $32 million settlement in a class action lawsuit brought by Altisource investors who claimed financial harm after Altisource’s stock plummeted after the New York Department of Financial Services began investigating the company’s relationship with Ocwen in early 2014.

The NYDFS investigation covered Ocwen’s relationship with several of its affiliated companies, all of which were chaired by Ocwen’s founder, William Erbey.

The investigation led to the NYDFS fining Ocwen $150 million and forcing Erbey to resign from his position as chairman of Ocwen and his position as chairman of several Ocwen affiliates, Altisource Portfolio Solutions, Altisource Residential Corporation, Altisource Asset Management Corporation, and Home Loan Servicing Solutions.

Before the investigation became public knowledge, Altisource Portfolio Solutions peaked at more than $170 per share in December 2013. Then, over the course of the investigation, the company’s stock dropped precipitously, falling to under $46 per share one year later.

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