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 7, 2005
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OCWEN FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
Florida 1-13219 65-0039856
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
The Forum, Suite 1000
1675 Palm Beach Lakes Boulevard, West Palm Beach, Florida 33401
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (561) 682-8000
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N/A
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS
(Dollars in 000s)
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On March 7, 2005, the Company's Board of Directors approved a reserve of $3,000
reflecting reassessments of prior estimates concerning two contingent
liabilities. In accordance with applicable accounting rules, this revision will
be reflected as an adjustment of the previously announced fourth quarter and
2004 earnings. Subsequent to the adjustments, net income for the fourth quarter
of 2004 was $2.6 million or $0.04 per share, and net income for the year ended
December 31, 2004 was $57.7 million or $0.88 per share. The relevant subsequent
events are described below.
On February 28, 2005, a jury in County Court for Nueces County, Texas, returned
a verdict of $140 in compensatory and statutory damages in favor of Jesus S.
Guzman and Joann B. Guzman in their lawsuit against the Bank and others arising
out of a disputed foreclosure. The jury rejected plaintiffs' request for
punitive damages. The verdict included $2,900 for plaintiffs attorneys' fees, an
amount which we believe is unsupported by the evidence and impermissibly
excessive under the controlling legal authorities. We are pursuing post-trial
motions seeking to set aside or substantially reduce the attorneys' fees award
and, if necessary, will take an appeal on that issue and perhaps other issues to
the Texas Court of Appeals for the Thirteenth Judicial District. We intend to
continue to vigorously defend the Guzman matter.
Earlier in February, 2005, a jury in Circuit Court for Palm Beach County,
Florida, returned verdicts of $1,000 and $1,056 in compensatory damages in favor
of Patti J. Kidder and Katherine R. Dean, respectively, in a lawsuit against OCN
and the Bank. The jury rejected plaintiffs' request for punitive damages. The
plaintiffs are former Bank employees who brought claims under the Florida Civil
Rights Act, the Florida Whistleblower Act and state tort law, arising out of an
alleged invasion of privacy and related incidents allegedly committed by other
former employees of the Bank in 1998 for which plaintiffs sought to hold the
Ocwen defendants vicariously liable. We believe the verdicts are against the
weight of evidence and contrary to law. Defendants have filed motions for a new
trial and/or remittitur and, if necessary, will take an appeal to the Florida
Court of Appeals for the Fourth District. We intend to continue to vigorously
defend the Kidder/Dean matter.
Revised statements of operations and financial condition are attached.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(a) - (b) Not applicable.
(c) Exhibits
99.1 Revised statements of operations and financial condition
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
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(Registrant)
By: /s/ ROBERT J. LEIST
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Robert J. Leist,
Vice President & Chief Accounting
Officer and Acting Chief Financial
Officer
Date: March 9, 2005