View:
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 12, 2003
OCWEN FINANCIAL CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 1-13219 65-0039856
- ----------------- ------------ -------------------
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
The Forum, Suite 1000
---------------------
1675 Palm Beach Lakes Boulevard, West Palm Beach, Florida 33401
---------------------------------------------------------------
(Address of principal executive office)(Zip Code)
Registrant's telephone number, including area code: (561) 682-8000
--------------
N/A
-------------------------------------------------------------
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
The news release of the Registrant dated March 12, 2003, announcing termination
of certain litigation and corresponding settlement is attached hereto and filed
herewith as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Not applicable.
(b) Not applicable.
(c) Exhibits
99.1 Text of a press release dated March 12, 2003.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
OCWEN FINANCIAL CORPORATION
(Registrant)
By: /s/ MARK S. ZEIDMAN
-------------------------------------------
Mark S. Zeidman
Senior Vice President and
Chief Financial Officer
Date: March 14, 2003
3
EXHIBIT INDEX
Exhibit No. Description Page
----------- ----------- ----
99.1 News release of Ocwen Financial 5
Corporation, dated March 12, 2003,
announcing termination of certain
litigation and corresponding settlement
4
================================================================================
[GRAPHIC LOGO OMITTED] Exhibit 99.1
OCWEN(R)
OCWEN FINANCIAL CORPORATION(R)
================================================================================
OCWEN FINANCIAL CORPORATION ANNOUNCES TERMINATION OF WALTON STREET CAPITAL
LITIGATION, SETTLEMENT AMOUNT TO BE RECORDED IN FOURTH QUARTER, 2002
WEST PALM BEACH, FL, March 12, 2003-- Ocwen Financial Corporation today
announced that a lawsuit brought against two wholly-owned subsidiaries, Ocwen
Asset Investment Corporation and Ocwen Partnership, L.P., by Walton Street
Capital, L.L.C. ("Walton") has been terminated following the parties' settlement
agreement. Walton filed suit in Circuit Court of Cook County, Illinois, alleging
defendants committed an anticipatory breach of contract with respect to a
proposed sale of certain commercial mortgage-backed securities to Walton. Walton
sought damages in the amount of approximately $27 million, including prejudgment
interest. A jury trial was scheduled to commence on March 4, 2003.
Although this settlement was entered into subsequent to the Company's year end
and fourth quarter 2002 earnings release, it will be accounted for in the fourth
quarter 2002, based on the accounting rules governing this type of subsequent
event. Accordingly, a pre-tax charge of $2.25 million will now be included in
the Company's 2002 full year results representing the settlement amount.
Given the substantial costs of proceeding with the litigation coupled with the
uncertainty of jury verdicts in complex matters, management determined that it
was in the best interest of the Company to settle this case for less than 10% of
the amount claimed. Pursuant to the terms of the settlement, in which the
defendants admitted no liability, the parties exchanged mutual releases and the
litigation was dismissed.
Ocwen Financial Corporation is a financial services company headquartered in
West Palm Beach, Florida. The Company's primary business is the servicing and
special servicing of nonconforming, subperforming and nonperforming residential
and commercial mortgage loans. Ocwen also specializes in the development of
related loan servicing technology and software for the mortgage and real estate
industries. Additional information about Ocwen Financial Corporation is
available at www.ocwen.com.
5