Arbitrator Awards AAMC $1.6 Million in Arbitration Brought by its Former CEO

Rhea-AI Summary

Altisource Asset Management Corporation (AAMC) announced a favorable arbitration ruling, awarding the company over $1.6 million against former CEO Indroneel Chatterjee, who was terminated for cause in April 2021. The arbitrator dismissed all of Chatterjee’s claims and awarded AAMC approximately $600,000 for the return of Chatterjee’s signing bonus and reimbursement of expenses due to his misconduct. The ruling also includes over $1 million in fees and costs. AAMC plans to enforce this judgment, signaling a positive outlook for the company.

Positive

• Award of more than $1.6 million strengthens AAMC's financial position.
• Dismissal of former CEO Chatterjee's claims reinforces company governance.
• The arbitration outcome allows AAMC to focus on business growth.

Negative

• None.

CHRISTIANSTED, U.S. Virgin Islands--(BUSINESS WIRE)-- Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE: AAMC) announced that the arbitrator awarded the Company more than $1.6 million in the arbitration brought against the Company by Indroneel Chatterjee, the Company’s former Chief Executive Officer. Mr. Chatterjee filed the arbitration after the Company terminated him for cause in April 2021.

The arbitrator had previously dismissed all of Mr. Chatterjee’s claims and awarded the Company approximately $600,000 related to the partial return of Mr. Chatterjee’s signing bonus and reimbursement to the Company for all expenses the Company incurred directly and solely as a result of Mr. Chatterjee’s misconduct in the arbitration. The arbitrator’s final award granted an additional award of fees and costs to the Company in the amount of over $1 million.

The Company intends to enforce the judgment against Mr. Chatterjee.

“We are pleased with the arbitrator’s ruling which clearly demonstrates the Company was justified in terminating Mr. Chatterjee,” said Chief Executive Officer, Jason Kopcak. “We are happy to put this matter behind us to allow us to continue building our business.”

About AAMC

AAMC is a private credit provider that originates alternative assets to provide liquidity and capital to under-served markets. We also continue to assess opportunities that could potentially be of long-term benefit to shareholders. Additional information is available at www.altisourceamc.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, anticipations, and assumptions. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,” “believe” and other expressions or words of similar meaning. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements.

The statements made in this press release are current as of the date of this press release only. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.

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Investor Relations

T: +1-704-275-9113

E: IR@AltisourceAMC.com

Source: Altisource Asset Management Corporation

FAQ

What was the outcome of the arbitration involving AAMC and Indroneel Chatterjee?

AAMC was awarded over $1.6 million in the arbitration against former CEO Indroneel Chatterjee.

How much did the arbitrator award AAMC against Chatterjee?

The arbitrator awarded AAMC more than $1.6 million, including approximately $600,000 for the return of Chatterjee's signing bonus.

When was Indroneel Chatterjee terminated from AAMC?

Indroneel Chatterjee was terminated from AAMC in April 2021.

What did AAMC intend to do following the arbitration ruling?

AAMC intends to enforce the judgment against Indroneel Chatterjee.

How does the arbitration ruling affect AAMC's future?

The ruling allows AAMC to focus on building its business and strengthens its financial position.