A lawsuit on behalf of investors who purchased LPS shares between July 29, 2009 and October 4, 2010 was filed over alleged violations of Federal Securities Laws by Lender Processing Services. Meanwhile an investigation on behalf of current long term investors in Lender Processing Services, Inc. (NYSE: LP)), including those who purchased also prior to July 2009 and presently continue to hold those LPS shares, over possible breaches of fiduciary duty was announced.

The investigation by a law firm on behalf of current long term investors in stock of Lender Processing Services, Inc. (Public, NYSE:LPS) concerns whether certain current and/or former officers and members of Lender Processing Services board of directors can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased LPS stock between July 29, 2009 and October 4, 2010. According to the complaint filed in the United States District Court for the Middle District of Florida the plaintiff alleges that Lender Processing Services, Inc violated the Securities Exchange Act of 1934 by failing to disclose between July 29, 2009 and October 4, 2010 material adverse facts about Lender Processing Services true financial condition, business and prospects.
Lender Processing Services 12month Total Revenue went from $1.484billion in 2006 to $2.37billion in 2009. Its Net Income increased from $201million to $276million. For the first three quarters in 2010 Lender Processing Services Inc reported quarterly Total Revenue of $592.39millio, $599.08million, and $626.04million. Its combined Net Income for the first nine month in 2010 was at $231.62million.
But in early 2010, so the above stated lawsuit, the U.S. Attorneys office in the Middle District of Florida announced investigation s of Lender Processing Services, Inc and its subsidiary Docx, for their alleged improper use of false documents to foreclose on Florida homeowners. The civil investigation focuses on allegations that Lender Processing Services, Inc engaged in creating and manufacturing bogus assignments of mortgage ownership in order to complete foreclosures quicker. Additionally, so the plaintiff, according to several media reports and various investigations Lender Processing Services default-related services division has also been accused of improperly splitting fees with attorneys, calling into question the source of a substantial portion of the companys revenue.
The plaintiff claims that as a result of the false statements, Lender Processing Services stock traded at artificially inflated prices between July 29, 2009 and October 4, 2010, reaching a high of $43.99 per share on October 23, 2009.
Then on October 4, 2010, after Lender Processing Services issued a press release commenting on what it considered 'mischaracterizations of its services.' the price of LPS stock declined an additional $2.72, or 8.6% per share, on October 4, 2010, to close at $28.76 per share. The price of LPS stock fell another $1.45, or 5.04%, on October 5, 2010, to close at $27.31 per share, on unusually heavy trading volume. Shares of Lender Processing Services, Inc. (LPS) traded recently at $31.33 per share, down from its current 52weekHigh of $43.09 per share.