We are investigating Black Knight, Inc. (BKI) (“Black Knight” or the “Company”) for potential violations of the federal securities laws.
On November 6, 2019, PennyMac Financial Services, Inc. (“PennyMac”), a customer of Black Knight’s mortgage software products since 2008, announced that it had filed a lawsuit against Black Knight in U.S. District Court for the Central District of California, “alleging that Black Knight . . . uses its market-dominating LoanSphere® MSP mortgage loan servicing system to engage in unfair business tactics that both entrap its licensees and create barriers to entry that stifle competition.” PennyMac’s press release specified that “[t]he lawsuit alleges that Black Knight violated the federal Sherman Act, the California Cartwright Act and California’s Unfair Competition Law and engaged in unfair competition under common law” and that PennyMac “seeks, among other relief, to preliminarily and permanently enjoin Black Knight’s wrongful practices, and seeks the recovery of actual and statutory damages.” On this news, Black Knight’s stock price fell sharply during intraday trading on November 6, 2019.