SAN FRANCISCO, Oct. 27, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges First American Financial Corp. (NYSE: FAF) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
First American Financial (FAF) Securities Fraud Class Action:
The lawsuit centers on the accuracy of First American’s statements about the company’s data protection practices and procedures.
Specifically, the complaint alleges that Defendants misled investors about First American’s basic security standards to protect its customers’ sensitive personal information and data and its heightened risk of cybersecurity failure resulting from its automation and efficiency initiatives which First American touted as giving it a distinct competitive advantage.
According to the lawsuit, investors began to learn the truth on May 24, 2019 when KrebsOnSecurity.com, a noted cybersecurity blog, reported First American leaked hundreds of millions of title insurance records. KrebsOnSecurity reportedly confirmed a tip from a real estate developer and found that First American’s website exposed approximately 885 million files, many of which are records of wire transactions with bank account numbers and other personal data.
Then, on Oct. 22, 2020, First American disclosed it received a Wells Notice from the SEC informing the company that the SEC’s enforcement staff determined to recommend the SEC file an enforcement action against the company related to its disclosures of, and controls for-, the aforementioned leak.
These events drove the price of First American shares sharply lower.
“We’re focused on investors’ losses, proving Defendants intentionally misled investors about First American’s data security standards and practices, and whether Defendants also misled investors about the company’s financial results,” said Hagens Berman partner Reed Kathrein.
If you are a First American investor and have significant losses, or have knowledge that may assist the firm’s investigation and prosecution of this matter, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding First American should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email FAF@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895