This is a securities class action lawsuit against First American Corporation and certain officers and directors.
The class action complaint alleges that, during the Class Period, First American and certain of First American's officers and directors engaged in an illegal scheme with Washington Mutual, Inc. ("WaMu"), whereby the defendants, through First American's real estate subsidiary, eAppraiseIT LLC, prepared artificially inflated appraisals of homes for use in connection with mortgages issued by WaMu. During the Class Period, in quarterly earnings reports, First American's management reported increased earnings from appraisal fees and reassured investors that internal controls were adequate.
The class action complaint alleges that First American's fees from the improper appraisals resulted in First American overstating its gross profit margins and net income during the Class Period and that throughout the Class Period the defendants made false and misleading statements regarding First American's internal controls and financial performance.
Name (Stock Symbol)
First American Corporation (FAF)
First American Corporation provides title insurance, other specialty insurance, escrow services and data analytics to the home loan industry.
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