Lawsuit Overview
September 30, 2011 - The court issued a final order of dismissal, granting the defendants' motion to dismiss without prejudice and dismissing the case.
February 9, 2011 - The defendants filed a motion to dismiss.
January 10, 2011 - The lead plaintiff filed an amended complaint on behalf of investors who purchased DJSP Enterprises Inc (NASDAQ: DJSP) common shares between February 16, 2010 and November 15, 2010. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 16, 2010 and November 15, 2010.
November 24, 2010 - The lead plaintiff and lead counsel were appointed.
November 19, 2010 - Another lead plaintiff motion was filed.
September 20, 2010 - Lead plaintiff motions were filed.
July 20, 2010 - An investor in shares of DJSP Enterprises Inc (NASDAQ: DJSP) filed a lawsuit in the U.S. District Court for the Southern District of Florida against DJSP Enterprises over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between March 16, 2010 and May 10, 2010.
According to the complaint the plaintiff alleges that DJSP Enterprises Inc and certain of its officers violated the Securities Exchange Act of 1934 by issuing between March 16, 2010 and May 10, 2010, material misrepresentations and by failing to disclose material adverse facts about its true financial condition, business and prospects.
DJSP Enterprises Inc reported in 2009 Total Revenue of $260.269million with a Net Income of $44.565million. According to the investigation by a law firm the investigation on behalf of investors in DJSP Enterprises Inc (NASDAQ: DJSP) stock focuses on the following events. On May 28, 2010, DJSP Enterprises Inc declined by $2.59, or 29.2%, to $6.28 after DJSP Enterprises Inc posted weaker-than-expected first-quarter results and warned investors of a full-year earnings shortfall. DJSP Enterprises Inc said it had a first-quarter adjusted profit of 35 cents a share, which was a nickel below the Thomson Reuters average estimate.
DJSP Enterprises Inc said that in April one of its largest bank clients initiated a foreclosure system conversion that cut the number of foreclosures. Because of the foreclosure system conversion and the U.S. government’s steps to prevent foreclosures, DJSP Enterprises Inc said it expects full-year earnings of $1.29 to $1.36 a share, which is below consensus. According to the complaint, on May 27, 2010, DJSP Enterprises Inc shocked the market by lowering its guidance for adjusted net income by $15 million to $17 million and for adjusted EBIDTA by $18 million to $22 million. DJSP Enterprises Inc attributed the lowered guidance to, (i) the foreclosure system conversion of one of its largest bank clients in April 2010, which resulted in a reduction in the referral of foreclosures filed; and (ii) a temporary slowdown in foreclosures due to governmental intervention programs. DJSP's Executive Vice President and CEO explained that the reason this information was not conveyed to shareholders back in April 2010, was due to a belief that these issues would fix themselves. Shares of DJSP Enterprises Inc (NASDAQ: DJSP) traded recently at $3.25 per share, down from its 52weekHigh of $13.65 per share.
DJSP Enterprises Inc, located in Plantation, Florida, through its subsidiary, DAL Group, LLC, engages in providing non-legal services supporting residential real estate foreclosure, other related legal actions, and lender owned real estate services in the United States.