The Real Deal Miami

High-powered Florida foreclosure attorney hit with investor suit

July 28, 2010 12:45PM

David Stern, the Broward County attorney whose law firm handles
one-fifth of all foreclosure cases against Florida homeowners, has been
hit with a lawsuit from two Ohio investors who claim Stern “materially
misled” them about the firm’s expected earnings following a decline in
foreclosure cases in Florida. Among the major clients of the law firm
are Bank of America, Wells Fargo and Citigroup. According to the suit,
DJSP Enterprises, a Plantation-based public company that does most of
its business with Stern’s law firm and which bought Stern’s non-legal
operations for $58 million in January, lost 29 percent of its stock
value in a single day because of a “substantial decrease” in
foreclosure cases during the months of April and May. Stern is also the
chairman and CEO of DJSP. The complaint alleges that Stern and DJSP
were purposefully slow to disclose the decline in their caseload. [Sun Sentinel]