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First American Class Action Lawsuit

22 days left to seek lead plaintiff status

Case Summary

Company Name
First American
Stock Symbol
FAF
Class Period
February 17, 2017 to October 22, 2020
Motion Deadline
December 24, 2020
Court
Central District of California

The First American class action lawsuit charges First American and two of its senior executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of First American securities between February 17, 2017 and October 22, 2020, inclusive (the “Class Period”).  The First American class action lawsuit was commenced on October 25, 2020 in the Central District of California and is captioned Floyd v. First American Financial Corp., No. 20-cv-09781.

Headquartered in Santa Ana, California, First American is a Fortune 500 company with over 18,000 employees and over $5 billion in revenue.  Through its subsidiaries, First American provides financial services through its title insurance and services segment and its specialty insurance segment.

The First American class action lawsuit alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:  (1) First American failed to implement basic security standards to protect its customers’ sensitive personal information and data; (2) First American faced a heightened risk of cybersecurity failure due to its automation and efficiency initiatives; and (3) as a result, defendants’ public statements were materially false and misleading at all relevant times.

On May 24, 2019, KrebsOnSecurity.com, a noted cybersecurity blog, reported a massive data exposure by First American in which approximately 885 million customer files were exposed by First American.  On this news, shares of First American fell $3.46 per share, or over 6%, to close at $51.80 per share on May 25, 2019.  Then, on October 22, 2020, First American filed a quarterly report on Form 10-Q with the Securities and Exchange Commission (“SEC”), which disclosed that the SEC enforcement staff and the New York Department of Financial Services were examining or investigating First American regarding its massive security breach.  First American also stated that in September 2020, First American had “received a Wells Notice informing [First American] that the enforcement staff 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 shares fell approximately $4.83 per share, or 9%, to close at $46.75 per share on October 22, 2020.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired First American securities during the Class Period to seek appointment as lead plaintiff in the First American class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the First American class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the First American class action lawsuit.  An investor’s ability to share in any potential future recovery of the First American class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the First American class action lawsuit or have questions concerning your rights regarding the First American class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the First American class action lawsuit must be filed with the court no later than December 24, 2020.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: February 17, 2017 - October 22, 2020
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