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PennyMac Litigation Update: Block & Leviton Provides Update on its Litigation Involving PennyMac Financial Services, Inc.

BOSTON, Jan. 21, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors and whistleblowers nationwide, is providing an update regarding the pending litigation captioned Garfield v. BlackRock Mortgage Ventures, LLC, et al., C.A. No. 2018-0917-KSJM (Del. Ch.).

The litigation was filed on December 20, 2018 and challenges the fairness of a reorganization transaction announced on August 2, 2018. This transaction created a massive tax benefit for insiders who held units in PennyMac Financial Services, Inc.’s (PFSI) operating subsidiary, but did not share any of those benefits with public stockholders who held Class A common stock.

On December 20, 2019, Vice Chancellor McCormick of the Delaware Court of Chancery denied Defendants’ Motions to Dismiss the Complaint and held that the facts and circumstances surrounding the reorganization raise an inference that both the process and price were not entirely fair. Shortly thereafter, Defendants sought reargument of their Motions to Dismiss, a request which the Court denied on January 21, 2020. The Action will now move into discovery.

If you purchased or acquired PennyMac Financial Services, Inc. securities before the reorganization and have questions about your legal rights, or possess information relevant to this litigation, you are encouraged to contact attorney Mark Delaney at (617) 398-5600, by email at mdelaney@blockesq.com, or by visiting https://www.blockesq.com/pennymac.

Block & Leviton LLP was ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation’s largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.

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Mark Delaney
(617) 398-5600 phone
260 Franklin Street, Suite 1860
Boston, MA 02110