Lieff Cabraser announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of First American Financial Corporation (“First American” or the ”Company“) (NASDAQ: FAF) between February 17, 2017 and October 22, 2020, inclusive (the “Class Period”).
If you purchased or otherwise acquired First American securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than December 24, 2020. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
First American investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the First American Securities Class Litigation
First American, headquartered in Santa Ana, California, provides financial services through its title insurance and services segment and its specialty insurance segment. The action alleges that, during the Class Period, defendants made materially false and misleading statements and/or failed to disclose that (1) the Company failed to implement security standards to protect its customers’ confidential personal and other information, and (2) the Company faced an increased risk of cybersecurity failures as a result of its automation and efficiency initiatives.
On May 24, 2019, the data security news website, www.KrebsOnSecurity.com, reported a massive leak of “hundreds of millions of [customer] documents” by First American. First American’s website exposed approximately 885 million files, “including bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and driver’s license images.” On this news, the price of First American stock fell $3.46 per share, or over 6%, from its closing price of $55.26 on May 24, 2019, to close at $51.80 on May 28, 2019, on unusually heavy trading volume.
On October 22, 2020, following the close of the market, First American filed its third quarter of 2020 Form 10-Q with the SEC, revealing that the Company had received a Wells Notice from the SEC enforcement staff regarding the security breach. According to the notice, “[t]he SEC enforcement staff is questioning the adequacy of disclosures the Company made at the time of the incident and the adequacy of its disclosure controls…[and] has made a preliminary determination to recommend a filing of an enforcement action by the SEC against the Company.” On this news, the price of First American stock fell $4.83 per share, or more than 9%, from its closing price of $51.58 on October 21, 2020, to close at $46.75 per share on October 22, 2020, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP