Business of Law
Layoffs of Perhaps 100 Follow Work Slowdown at Fla. Foreclosure Law Firm
Posted Oct 13, 2010 12:24 PM CDT
By Martha Neil
Following news from Bloomberg that a major lender has stopped sending new cases to a South Florida law firm known for its foreclosure work, a lawyer for its chief attorney, David Stern, confirms that it has made layoffs.
There were "probably less than 100" workers let go from Stern's law firm in Plantation and, possibly, his related foreclosure processing company, DJSP Enterprises, writes the Heard Along the Coast blog of the South Florida Business Journal. The article attributes the information to Jeffrey Tew, a lawyer for Stern.
Several sources had said hundreds were laid off, but that has not been confirmed, according to the article. It doesn't say whether the 100 or so confirmed layoffs included attorneys.
The Law Offices of David Stern and DJSP have been handling about 70,000 cases a year, reports the Miami Herald (reg. req.).
However, adjusted net income for the first half of 2010 at DJSP plummeted to $7.8 million in 2010, a drop of 50 percent from the $15.8 million it earned during the first half of 2009, filings for the public company state.
Related earlier coverage:
ABAJournal.com: "Fla. AG Probe: Did 3 Law Firms Get 1,000s of Foreclosure Judgments By Possible Wrongdoing?"
ABAJournal.com: "‘Like Hamsters in a Cage’: Foreclosure Firm Cut Corners to Make Money, Story Says"
ABAJournal.com: "Freeze Foreclosures in All 50 States, Lawmaker Urges Big Banks, as 40 State AGs Plan Joint Probe"