AAMC Files Lawsuit Against Former Board Member Nathaniel Redleaf for Improperly Disclosing Confidential Information for Financial Gain
As outlined in the complaint, Redleaf engaged in a secret scheme to illegally use AAMC’s confidential information to benefit Luxor, a
One aspect of the scheme involved Luxor’s
Instead of adhering to the well-established compliance practice of setting up an ethical wall to ensure that material nonpublic information is not disclosed to a hedge fund that employs a director of a public company, Redleaf improperly disclosed the information to Luxor as noted in the complaint. Luxor anticipated making hundreds of millions of dollars on the position it built.
Redleaf’s actions harmed AAMC and its shareholders. AAMC is seeking to recoup any of Luxor and Redleaf’s ill-gotten gains through this litigation.
AAMC is an alternative lending company that provides liquidity and capital to under-served markets. We also continue to assess opportunities that could potentially be of long-term benefit to shareholders such as Crypto-ATMs.
Additional information is available at www.altisourceamc.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, anticipations, and assumptions with respect to, among other things, the Company’s financial results, margins, employee costs, future operations, business plans, including its ability to sell loans and obtain funding, and investment strategies as well as industry and market conditions. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,” “believe,” and other expressions or words of similar meaning. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from these forward-looking statements may include, without limitation: our ability to develop our businesses and to make them successful or sustain the performance of any such businesses; our ability to purchase, originate, and sell loans; our ability to obtain funding, market and industry conditions, particularly with respect to industry margins for loan products we may purchase, originate, or sell; our ability to hire employees and the cost of hiring such employees; and other risks and uncertainties detailed in the “Risk Factors” and other sections described from time to time in the Company’s current and future filings with the
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FOR FURTHER INFORMATION CONTACT: Investor Relations T: +1-704-275-9113 E: IR@AltisourceAMC.com
Source: Altisource Asset Management Corporation