MURRAY, FRANK & SAILER LLP ANNOUNCES THE FILING OF A SHAREHOLDER CLASS ACTION AGAINST PHH CORPORATION - PHH
New York, NY April 5, 2006 - Murray, Frank & Sailer LLP announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all securities purchasers of PHH Corporation (NYSE: PHH) ("PHH" or the "Company") between May 12, 2005 and March 1, 2006, inclusive (the "Class Period").
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The Complaint charges PHH and certain of its officers and directors with violations of the Securities Exchange Act of 1934. PHH provides mortgage and fleet management services in the United States and Canada. The Company's mortgage services include origination, sale, and servicing of residential first and second mortgage loans; and private label mortgage outsourcing. The complaint alleges that defendants' Class Period representations regarding PHH were materially false and misleading when made because defendants failed to disclose: (1) that the Company materially overstated its deferred tax assets, thereby materially inflating its reported net income; (2) that the Company lacked adequate internal controls; (3) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); and (4) that as a consequence of the foregoing, the Company's financial results were materially inflated at all relevant times.
On March 1, 2006, the Company issued a press release revealing that the Company's reported results were materially overstated. The Company also announced that it had replaced its Chief Financial Officer, defendant Neil J. Cashen, with Mr. Clair M. Raubenstine. On this news, shares of PHH fell $2.73 per share, or 9.5 percent per share, to close, on March 2, 2006, at $26.00 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired PHH securities on any world exchange between May 12, 2005 and March 1, 2006 and sustained damages, you may, no later than May 16, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the Company’s securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]