March 24, 2015 (Shareholders Foundation) - An investor, who currently holds shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS), filed a lawsuit in effort to stop the proposed takeover of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS. by New Residential Investment Corp.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:HLSS stockholders by agreeing to sell Home Loan Servicing Solutions Ltd. too cheaply via an unfair process to Residential Investment Corp

On February 22, 2015, New Residential Investment Corp. (NYSE:NRZ) and Home Loan Servicing Solutions, Ltd. (NASDAQ: HLSS) announced a merger agreement under which New Residential Investment Corp will acquire all of the outstanding shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) for $18.25 per share in cash, totaling approximately $1.3 billion.

However, the plaintiff claims that the proposed consideration NASDAQ:HLSS shareholders will receive is grossly inadequate and undervalues Home Loan Servicing Solutions Ltd. Indeed, NASDAQ:HLSS shares traded in 2013 as high as $25.24 per share. Furthermore,, Home Loan Servicing Solutions Ltd reported that its annual Total Revenue rose from $49.87 million in 2012 to $239.83 million in 2013 and that its Net Income increased from $19.62 million in 2012 to $117.66 million in 2013. Shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) grew from $13.26 per share in June 2012 to as high as $25.24 per share in July 2013. In addition, the plaintiff claims that the process is also unfair to NASDAQ:HLSS stockholders.