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First American Financial Corporation (NYSE: FAF) Investor Securities Class Action Lawsuit 10/25/2020

  • If you purchased shares of First American Financial Corporation (NYSE: FAF), you may have certain options. Please contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
First American Financial Corporation
Security
NYSE: FAF

Case Name
First American Financial Shareholder Class Action Lawsuit 10/25/2020
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Central District of California

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Summary

March 29, 2021 - An amended complaint was filed.

October 25, 2020 - An investor in shares of First American Financial Corporation (NYSE: FAF) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by First American Financial Corporation in connection with certain allegedly false and misleading statements made between February 17, 2017 and October 22, 2020.

Santa Ana, CA based First American Financial Corporation, through its subsidiaries, provides financial services.

On May 24, 2019, a report was published alleging that First American Financial Corporation may have allowed unauthorized access to more than 885 million records related to mortgage deals going back to 2003. According to report, First American Financial Corporation said that it learned of a “design defect in one of its production applications that made possible unauthorized access to customer data” and has shut down external access.

On October 22, 2020, First American Financial Corporation announced that it had received a Wells Notice from the U.S. Securities and Exchange Commission “informing the Company that the enforcement staff has made a preliminary determination to recommend a filing of an enforcement action[.]” The Wells Notice was related to the earlier security breach. Shares of First American Financial Corporation (NYSE: FAF) declined to $45.82 per share on October 22, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of First American Financial Corporation (NYSE: FAF) common shares between February 17, 2017 and October 22, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between February 17, 2017 and October 22, 2020, the defendants made false and/or misleading statements and/or failed to disclose that the Company failed to implement basic security standards to protect its customers’ sensitive personal information and data, that the Company faced a heightened risk of cybersecurity failure due to its automation and efficiency initiatives, and that as a result, defendants’ public statements were materially false and misleading at all relevant times. According to the suit, these true details were disclosed by a market research firm.