PHH Corporation, Executives Named in Class Action Alleging Securities Law Violations

New to ClassAction.org? Read our Newswire Disclaimer

PHH Corporation and its board of directors are on the receiving end of a proposed class action alleging the defendants issued a misleading proxy statement regarding the company’s potential merger with Ocwen Financial Corporation. According to the complaint, the proxy was missing material information concerning PHH’s financial projections and the background process of the proposed sale. In particular, the case takes issue with the statement’s alleged failure to mention whether the confidentiality agreements reached with 38 other parties contained provisions precluding those potential buyers from proposing superior offers for the company. The plaintiff in the suit claims the missing information could damage investors who are set to vote on whether they support the transaction and must be able to determine whether the deal is fair.