Lender Processing Services Is Target of DOJ Investigation; Stock Goes Off a Cliff
Trading in Lender Processing Services Inc.'s stock was halted today around 10:30 AM EST after it came out that the Department of Justice had launched an investigation into the company's mortgage reporting systems. The stock lost a quarter of its value, with prices dropping by over $9 at the time trading stopped.
Apparently, the DOJ is concerned that the company's automated mortgage reporting system may be passing on erroneous evidence to attorneys who rely on the service for evidence in court proceedings.
The company's stock had been doing relatively well, and had more or less recovered from an October low. The shares started the day at $33.33.
Then the news of the investigation broke, and prices fell through the floor. At one point in the morning's trading, the company's shares had fallen to $20.81. Trading ended with the shares at $23.56.
Check back for updates on this story as they come in.