|[March 20, 2014]
RESI SHAREHOLDER ALERT: Law Firm of Wohl & Fruchter Investigating the Board of Directors of Altisource Residential Corporation
NEW YORK --(Business Wire)--
The law firm of Wohl & Fruchter LLP is investigating claims for breach
of fiduciary duty and other violations of state law against the Board of
Directors (Board) of Altisource Residential Corporation (RESI)
RESI owns a portfolio of non-performing mortgages and foreclosed
single-family homes, which are managed by Altisource Asset Management
(AAMC) (NYSE: AAMC). In exchange for AAMC's asset management services,
RESI pays AAMC a quarterly incentive fee (Incentive Fee).
On March 19, 2014, Glaucus Research published an article on Seeking
Alpha contending that the Incentive Fee is at least four to seven
times higher than the compensation received by similarly situated asset
managers, and as such, represents "a sweetheart deal that will unjustly
enrich insiders with a beneficial stake in AAMC at the expense of RESI's
The Glaucus Research articlefurther highlighted the conflict of
interest between AAMC and RESI insofar as AAMC's senior management team
also serves as the senior management of RESI. Both entities are, in
turn, controlled by William C. Erbey (who, among other things, serves as
Chairman of the Board of both entities).
Wohl & Fruchter's investigation concerns whether the Board is breaching
it fiduciary duties to RESI shareholders by, among other things, failing
to negotiate with AAMC to reduce the Incentive Fee.
Persons with relevant information, and RESI shareholders with questions
about this investigation, are invited to contact our Firm by calling
866.833.6245, or contacting the attorney below.
Additional information is available at http://www.wohlfruchter.com/cases/resi.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation arising from
fraud and other fiduciary breaches by corporate managers, as well as
other complex litigation matters. Please visit our website, www.wohlfruchter.com,
to learn more about our Firm, or contact one of our partners.
This release may be deemed to constitute attorney advertising.
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