DJSP to halt trading and delist from Nasdaq
DJSP Enterprises (DJSP), the publicly traded arm of the embattled David J. Stern foreclosure law firm filed a regulatory notice Friday that it would voluntarily delist and deregister its shares from Nasdaq. The stock closed at 10 cents a share on Friday, in what is expected to be the last day of trading. The stock will no longer be listed after March 28. DJSP Enterprises provides processing services for the mortgage and real estate industries. The company received letters from Nasdaq in December notifying it of deficiencies and that it was at risk of being delisted because its stock was trading at less than $1. DJSP does not believe that it will be able to regain compliance by the deadline of May 23, the firm said in a recent news release. In March, HousingWire reported that the Law Offices of David J. Stern, under investigation for its foreclosure practices, will cease to handle pending Florida foreclosure cases as of March 31, according to a new regulatory filing. DJSP said at the time that it didn't expect to get any additional business from the Plantation, Fla.-based law firm. Stern was the only major client of DJSP, a foreclosure servicer with processing and title affiliates. Stern resigned as the CEO of DJSP last fall as the investigation of his law firm heated up. Both Stern and DJSP have been in a freefall since last fall when allegations of robo-signing came to light. The law firm is one of several under investigation by the Florida Attorney General's Office. It lost a huge chunk of business when Fannie Mae and Freddie Mac pulled their foreclosure cases from the firm, Both Stern and DJSP have gone through several rounds of job cuts. In November, a DJSP subsidiary defaulted on a bank line of credit. Write to Kerry Curry. Follow her on Twitter @communicatorKLC.