[Update 1: Clarifies timeline of business at Castle Stawiarski]
Law firm Castle Stawiarski did not put the breaks on its foreclosure empire when a Wisconsin-based hedge fund filed a $30 million lawsuit against the law firm.
No other media outlet picked up on the coverage of the lawsuit, except for the Denver Post, who originally wrote the article (note: the blogpost did run in a HousingWire Morning Radar email alert).
The blog by David Migoya peeled back the layers of the lawsuit, stating the case focuses on more than 25 different companies that manage and track foreclosures — all either established by Castle or bought out by company holdings. The firm borrowed up to $30 million investment capital from Freeport Financial which now alleges failure to repay.
Sources involved in the ongoing litigation can not speak on the record, citing legal restrictions.
Migoya also stated that he reached out to any and all parties involved, and likewise, no response was obtained.
That is, until Castle Stawiarski released a statement to HousingWire.
Castle Stawiarski and The Cooper Law Firm announced that the companies since completed their back office processing operations transaction. As a result, all claims between the law firms and RP holdings were also settled.
So what does this exactly mean?
Despite the allegations being made, and ensuing press coverage, the company is stating that operations remain unaffected and business will continue as usual.
“The purchase of the ancillary default services assets has allowed us to ensure that there will be continued cooperation and continuity of services without any disruption,” said attorney Larry Castle in the statement.
He added, “Most importantly, our clients will see no change or interruption in the processing of their files as a result of the settlement.”