Labor & Employment Law
Embattled Former Foreclosure King Now Faces Potential Class Action by Ex-Employees
Posted Aug 24, 2011 3:45 PM CST
By Martha Neil
The dust hasn't yet settled in the ongoing breakup of a former Florida foreclosure king's empire.
But in the latest blow to attorney David J. Stern, a federal magistrate judge in Miami is recommending a green light for a class-action case. It would be brought by ex-employees of a legal processing business associated with his Plantation law firm concerning alleged labor law violations, the South Florida Sun-Sentinel reports.
The case could involve more than 700 former workers for DJSP Enterprises.
Stern, who oversaw a massive and once highly profitable mortgage foreclosure practice representing lenders, is currently being investigated by the state attorney general's office. Meanwhile, the Florida Bar has filed a complaint with the state supreme court seeking disciplinary action.
Among other issues, he reportedly abandoned thousands of cases, due to a lack of staff to handle them, by simply writing letters to chief judges throughout the state listing the matters, rather than filing motions in individual cases as ordinarily is expected.
DJSP Enterprises voluntarily delisted its stock earlier this year.
ABAJournal.com: "Selling Foreclosure Firm’s Back Office Earned $60M for Attorney David Stern"
ABAJournal.com: "Law Firm of Fla. ‘Foreclosure King’ to Close; It and Affiliated Company Once Had 1,200 Workers"
ABAJournal.com: "As Chief Judges Agree Law Firm Can’t Simply Quit, One Sets Hearings for 9,000 Abandoned Cases"