Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of First American Financial Corporation (FAF) Investors

·3 min read

Glancy Prongay & Murray LLP ("GPM"), a leading national rights firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired First American Financial Corporation ("First American Financial" or the "Company") (NYSE: FAF) securities between February 17, 2017 and October 22, 2020, inclusive (the "Class Period"). First American Financial investors have until December 24, 2020 to file a lead plaintiff motion.

If you suffered a loss on your First American Financial investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/first-american-financial-corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On May 24, 2019, KrebsOnSecurity reported that the Company’s website "leaked hundreds of millions of documents related to mortgage deals going back to 2003." The records included bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and driver’s license images—all of which "were available without authentication to anyone with a Web browser." Approximately 885 million records were exposed.

On this news, the Company’s share price fell $3.31, or 6%, to close at $49.52 per share on May 28, 2019, thereby injuring investors.

On October 22, 2020, First American Financial disclosed that it had received a Wells Notice from the SEC, regarding a preliminary determination to file an enforcement action against the Company related to the security breach. The SEC questioned the adequacy of the Company’s disclosures at the time of the incident and the adequacy of its disclosure controls.

On this news, the Company’s share price fell $4.83 per share, or 9%, to close at $46.75 per share on October 22, 2020, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company failed to implement basic security standards to protect its customers’ sensitive personal information and data; (2) First American Financial 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.

If you purchased or otherwise acquired First American Financial securities during the Class Period, you may move the Court no later than December 24, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20201026005734/en/

Contacts

Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
www.glancylaw.com
shareholders@glancylaw.com