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Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against First American Financial Corporation (FAF)

NEW YORK, Oct. 27, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against First American Financial Corporation (“First American” or the “Company”) (NYSE: FAF) in the United States District Court for the Central District of California on behalf of those who purchased or acquired the securities of First American between February 27, 2016 and September 15, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for First American investors under the federal securities laws.

On May 24, 2019, KrebsOnSecurity reported that the Company’s website “leaked hundreds of millions of documents related to mortgage deals going back to 2003.” The records included bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and driver’s license images—all of which “were available without authentication to anyone with a Web browser.” Approximately 885 million records were exposed.

On this news, the Company’s share price fell $3.31, or 6%, to close at $49.52 per share on May 28, 2019, thereby injuring investors. On October 22, 2020, First American disclosed that it had received a Wells Notice from the SEC, regarding a preliminary determination to file an enforcement action against the Company related to the security breach. The SEC questioned the adequacy of the Company’s disclosures at the time of the incident and the adequacy of its disclosure controls. On this news, the Company’s share price fell $4.83 per share, or 9%, to close at $46.75 per share on October 22, 2020, thereby injuring investors further.

The Complaint alleges that Defendants failed to disclose to investors that: (1) the Company failed to implement basic security standards to protect its customers’ sensitive personal information and data; (2) First American faced a heightened risk of cybersecurity failure due to its automation and efficiency initiatives; and (3) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

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Investors who purchased or otherwise acquired shares of First American during the Class Period should contact the Firm prior to the December 24, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.