PHH Hit with Class-Action Suit
Posted by CM on July 17, 2009
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By: Martin C. Daks; 3/23/2006
An Oklahoma law firm announced today that it has filed a class-action lawsuit against PHH (NYSE: PHH), a former Cendant subsidiary that provides mortgage origination, and vehicle fleet-management services.
On March 17, Federman & Sherwood filed a class-action lawsuit in the United States District Court for the District of New Jersey, alleging violations of federal securities laws including claims that PHH issued a “series of material misrepresentations to the market which had the effect of artificially inflating the market price.” The class period covers May 12, 2005 through March 1, 2006.
In recent SEC filings, Mt. Laurel-based PHH has noted that revaluations and other reviews of its prior transactions may result in charges against its 2005 income of up to $71 million. Company shares fell $0.31 to $27.07 this afternoon.