Plaintiffs Attorneys Sue PHH OverStock Drop
NEW YORK - (03/20/06) Investors in PHH Corp. filedsuit against the mortgage banking giant and its senior managementFriday claiming the company committed fraud in its financialreporting to shareholders. The purported class action charges thatPHH, credit unions biggest mortgage bank, made false andmisleading financial statements in news releases and in financialfilings with the Securities and Exchange Commission pertaining tolast years spin-off of PHH from Cendant Corp. Theplaintiffs, represented by Milberg Weiss Bershad & Schulman,noted that on March 1, the day PHH disclosed the inaccuratefinancial reports and fired its Chief Financial Officer its shareprice fell 10% in a big market sell-off. After the announcement,Fitch Ratings placed the debt of PHH on ratings watch negative.Since being spun off from Cendant last spring, PHH has acquiredCUNA Mutual Groups $10 billion mortgage portfolio to becomethe largest mortgage bank for credit unions. The company is thenations 11th largest mortgage lender with a portfolio of$160 billion.