LPS Reacts To Dow Jones Bankruptcy Review Report

Posted by Orb Staff on April 20, 2009 No Comments
Categories : Mortgage Servicing

nville, Fla.-based Lender Processing Services Inc. (LPS), has responded to an article published recently by Dow Jones Bankruptcy Review in which the journal claimed LPS is the subject of a formal investigation by the Department of Justice. LPS says it is not aware, nor has it been informed, that it is the subject of a formal investigation, although the company adds that certain regional U.S. Trustees Offices, which are statutorily charged with oversight of the bankruptcy process, have inquired about the manner in which LPS' proprietary technology and services are used during bankruptcy and foreclosure proceedings. ‘LPS has voluntarily cooperated with the U.S. Trustees Offices with respect to these inquiries,’ the company's press statement says. Philadelphia-area bankruptcy judge Diane Weiss Sigmund issued an opinion last week with respect to a bankruptcy case in which the activities of case participants were reviewed, LPS notes. The company, while not a party to the case, voluntarily demonstrated the use of its system for Sigmund. LPS additionally provided the information requested by the U.S. Trustee Offices, the company says. "In Judge Sigmund's opinion issued at the conclusion of the proceeding, Judge Sigmund stated that LPS was not responsible for any errors in the conduct of the case," the company statement says. The [u][link=http://triangle.bizjournals.com/triangle/othercities/jacksonville/stories/2009/04/13/daily43.html]Jacksonville Business Journal[/link][/u] reports that LPS shares fell more than $9 Friday morning, falling to almost $20 per share, and trading paused following the Dow Jones report. After trading resumed midday, the stock rebounded to close to $30 per share. SOURCE: LPS, Jacksonville Business Jo

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