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February 4, 2014

Judge Sanctions Nevada AG

A Nevada judge has taken the unusual step of sanctioning the state attorney general in her case against Lender Processing Services Inc. and ordered the state to pay legal and discovery costs for the defendant, the Las Vegas Review-Journal reports:

Clark County District Judge Elizabeth Gonzalez ruled Thursday that the state must pay the legal expenses of Lender Processing Services Inc. after failing to comply with court orders to produce evidence that would back up allegations of wrongdoing first made on Dec. 16, 2011.

Attorneys for Lender Processing, recently renamed Black Knight Financial Services, will file a detailed bill within two weeks, but costs could run several hundred thousand dollars and perhaps exceed $1 million.

On the day that the AG’s office filed the case, they also released a statement laying out their accusations against Lender Processing. The company’s stock dropped 14 percent as a result.

Despite the judge’s ruling, the class action continues. The company says it is because the AG outsourced the litigation to an outside law firm. “They have a class-action law firm running this,” a company spokesman said. “The attorney general is not running this.”

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