Altisource Residential Corp (NYSE:RESI) Shareholder Class Action Lawsuit

Our law firm is investigating potential claims on behalf of shareholders of Altisource Residential Corp (NYSE:RESI) over possible violations of US securities laws due to possible false and misleading statements made by the company and its officers. 

If you have purchased shares of Altisource Residential Corp (NYSE:RESI), call 1-800-934-2921 right now to protect your rights.

 

Our law firm believes that Altisource Residential Corp (NYSE:RESI) may have violated US securities laws, and the actions of the company may have caused investors of the company to be negatively affected.

Altisource Asset Management Corp. is the company’s asset manager, and it operates under the leadership of William Erbey, the chairman of Altisource Residential Corp. The management team of Altisource Asset Management Corp. also serves as executives and asset managers of Altisource Residential Corp.

According to a report issued by Altisource Residential Corp., its Total Revenue in 2013 was $71.61 million. In 2012, the company incurred a Net Loss of $0.09 million, but it transformed the loss to a Net Income of $39.60 million the following year.

In early 2013, the company’s shares were sold at $15.50 per share, but they grew in value such that by January 2014, they were going for $34.81 per share.

However, a report published on March 19, 2014 revealed that Altisource Residential Corp. was significantly overpaying its asset management firm. The report stated that the company was paying Altisource Asset Management Corp. between four and seven times more than the market price. In addition, the asset management agreement had an undisputed conflict of interest because the asset management’s team also served as the company’s senior executives.

The investigation of Altisource Residential Corp. concerns whether the company breached its fiduciary duties in connection to its asset management agreement with Altisource Asset Management Corp., particularly concerning the agreed incentive fees.

Altisource Residential Corporation’s share value closed at $31.11 on March 25, 2014.

Our law firm is investigating potential claims on behalf of shareholders of Altisource Residential Corp (NYSE:RESI) over possible violations of US securities laws due to possible breaches of fiduciary duty by officers of the company. If you have purchased shares of Altisource Residential Corp (NYSE:RESI), contact our law firm right now to protect your rights.

Own shares of Altisource Residential Corp (NYSE:RESI)? Contact us to protect your rights.

If you have purchased shares of Altisource Residential Corp (NYSE:RESI), complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights. 

Complete the form below for a free no obligation consultation. 

 

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