Altisource Residential Corp.

Robbins Arroyo LLP Is Investigating the Officers and Directors of Altisource Residential Corporation on Behalf of Shareholders

Robbins Arroyo LLP is investigating whether certain officers and directors of the property owner and management company Altisource Residential Corporation (NYSE: RESI) breached their fiduciary duties to shareholders.

View the investigation on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/altisource-residential-corp

Altisource Residential Urged to Terminate Asset Management Agreement

On March 19, 2014, Glaucus Research published an article on Seeking Alpha challenging the fees paid by Altisource Residential to the company’s asset manager, Altisource Asset Management Corporation (“AAMC”). Altisource Residential pays a quarterly “incentive fee” to AAMC for managing the company’s portfolio of non-performing mortgages and foreclosed single-family homes. According to the Glaucus Research article, in the fourth quarter of 2013, AAMC received an incentive fee equal to 32% of Altisource Residential’s dividends paid to shareholders. That incentive fee is estimated to be four to seven times greater than the compensation similar asset managers receive. In addition, the article indicates that AAMC’s management has a conflict of interest as it serves as the asset manager for Altisource Residential and shares certain executives with the company. Moreover, both Altisource Residential and AAMC are run by the same Chairman, William C. Erbey.

In light of this news, Robbins Arroyo LLP is investigating whether Altisource Residential’s board of directors breached its fiduciary duties to shareholders by failing to adequately protect shareholders in negotiating its asset management agreement with AAMC.

Altisource Residential Shareholders Have Legal Options

Robbins Arroyo LLP highlights that Altisource Residential shareholders have the option to pursue a shareholder litigation demand or shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company.

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.

 

Shareholder Information

Items marked with an asterisk (*) are required information.

First Name * Last Name *
Address City State/Province *
ZIP/Postal Code Country/Region Phone *
E-mail * Confirm: E-mail *

Shares Purchased:
Number of Shares: Buy Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Shares Sold:
Number of Shares: Buy Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

* I have read the disclaimer information

    Send This Post

    Tags: