A lawsuit on behalf of investors in DJSP Enterprises who purchased DJSP shares during the period between March 16, 2010 and May 10, 2010 alleging securities laws violations by DJSP Enterprises was filed in July. Meanwhile an investigation on behalf of current long term investors in DJSP Enterprises, Inc (NASDAQ:DJSP), including those who purchased also prior to March 2010 and presently continue to hold those DJSP shares, over possible breaches of fiduciary duty was announced.

According to the complaint filed in the United States District Court for the Southern District of Florida the plaintiff alleges on behalf of those who purchased common stock of DJSP Enterprises, Inc (NASDAQ:DJSP) between March 16, 2010 and May 10, 2010, that DJSP Enterprises violated the Securities Exchange Act of 1931 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. The investigation by a law firm on behalf of current DJSP Enterprises long term investors, including those who purchased also prior to March 2010 and presently continue to hold those DJSP shares, focuses on potential breaches of fiduciary duty by certain officers and directors of DJSP Enterprises in connection with the alleged securities laws violations.

On May 28, 2010, DJSP Enterprises declined by $2.59, or 29.2%, to $6.28 after DJSP Enterprises posted weaker-than-expected first-quarter results and warned investors of a full-year earnings shortfall. DJSP Enterprises 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 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. governments steps to prevent foreclosures, DJSP Enterprises 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 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 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 (DJSP) traded recently at $2.46 per share, down from its 52weekHigh of $13.65 per share.