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Kaufman & Company Files Class Action Lawsuit Against Eight Lenders and Mortgage Servicers

October 04, 2012

Steven S. Kaufman is serving as co-counsel in a complex, multi-defendant class action lawsuit against eight lenders and mortgage servicers for fraud and violations of the Ohio Consumer Sales Practices Act. The lawsuit was filed by seven individuals on behalf of all Ohio residents who had been defendants in judicial foreclosure actions on home mortgages purportedly held by securitization trusts. These foreclosure actions were knowingly initiated and prosecuted by lenders and mortgage servicers on behalf of parties that lacked legal standing. The homeowners were damaged by defendants’ abusive foreclosure practices.

Filed in the Court of Common Pleas Cuyahoga County, Ohio and assigned to Judge Michael P. Donnelly, the complaint alleges that the defendants imposed inflated, unfair, unreasonable and/or fabricated fees for “default management services,” and prepared, executed and notarized fraudulent documents. Plaintiffs are claiming damages for fraud, conspiracy to commit fraud, slander of title, violations of the Ohio Consumer Sales Practices Act and injunctive relief.

The defendants are alleged to have acted and conspired in concert in order to generate enormous profits from default loan servicing fees. The defendants named in the July 23, 2012 complaint are Lender Processing Services, Inc.; LPS Default Solutions, Inc.; DocX LLC; Fidelity National Information Services, Inc.; American Home Mortgage Servicing, Inc.; and three Ohio-based law firms, Reimer, Arnovitz, Chernek & Jeffrey, Co. LPA; Lerner, Sampson & Rothfuss LPA; and, Manley Deas Kochaliski. The law firm of Berger and Montague serves as co-counsel.

Kaufman & Company, LLC