Vacek, Jr. v. Walter Investment Management Corp.

This case is a shareholder derivative action on behalf of Walter Investments against certain officers and directors who breached their fiduciary duties and were unjustly enriched between May 3, 2016 and June 22, 2017.  Walter Investments is an independent servicer and originator of mortgage loans and servicer of reverse mortgage loans.

After submitting false claims related to reverse mortgage servicing and deceiving  homeowners regarding loan servicing and modifications, Walter settled two lawsuits with Federal Agencies for $92 million in fines.

Presently Walter is continuing to perform similar conduct by making false misleading statements and failing to disclose that (a) the Company was involved in fraudulent practices that violated the False Claims Act; (b) the Company’s Ditech subsidiary had a material weakness in its internal controls over financial reporting; and (c) resultantly, the Company lacked adequate internal controls over financial reporting.