X Close
TMCnet - World's Largest Communications and Technology Community



RESI SHAREHOLDER ALERT: Law Firm of Wohl & Fruchter Investigating the Board of Directors of Altisource Residential Corporation
[March 20, 2014]

RESI SHAREHOLDER ALERT: Law Firm of Wohl & Fruchter Investigating the Board of Directors of Altisource Residential Corporation

NEW YORK --(Business Wire)--

The law firm of Wohl & Fruchter LLP is investigating claims for breach of fiduciary duty and other violations of state law against the Board of Directors (Board) of Altisource Residential Corporation (RESI) (NYSE:RESI).

RESI owns a portfolio of non-performing mortgages and foreclosed single-family homes, which are managed by Altisource Asset Management (AAMC) (NYSE: AAMC). In exchange for AAMC's asset management services, RESI pays AAMC a quarterly incentive fee (Incentive Fee).

On March 19, 2014, Glaucus Research published an article on Seeking Alpha contending that the Incentive Fee is at least four to seven times higher than the compensation received by similarly situated asset managers, and as such, represents "a sweetheart deal that will unjustly enrich insiders with a beneficial stake in AAMC at the expense of RESI's shareholders."

The Glaucus Research articlefurther highlighted the conflict of interest between AAMC and RESI insofar as AAMC's senior management team also serves as the senior management of RESI. Both entities are, in turn, controlled by William C. Erbey (who, among other things, serves as Chairman of the Board of both entities).

Wohl & Fruchter's investigation concerns whether the Board is breaching it fiduciary duties to RESI shareholders by, among other things, failing to negotiate with AAMC to reduce the Incentive Fee.

Persons with relevant information, and RESI shareholders with questions about this investigation, are invited to contact our Firm by calling 866.833.6245, or contacting the attorney below.

Additional information is available at http://www.wohlfruchter.com/cases/resi.

About Wohl & Fruchter

Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.

This release may be deemed to constitute attorney advertising.

[ Back To TMCnet.com's Homepage ]

Technology Marketing Corporation

800 Connecticut Ave, 1st Floor East, Norwalk, CT 06854 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.


© 2015 Technology Marketing Corporation. All rights reserved | Privacy Policy