Judge Robin Rosenberg.

A Florida federal judge granted Ocwen Financial Corp.'s motion to dismiss a securities fraud suit claiming issues with a mortgage-servicing program caused stock prices to plunge.

Named plaintiff Karen Carvelli filed the putative class action in U.S. District Court for the Southern District of Florida a year ago on behalf of investors. After hearing oral arguments last month, Judge Robin Rosenberg in West Palm Beach on Monday dismissed the suit with prejudice, saying the plaintiffs failed to make out a claim.

She ruled that bolstering the complaint “would not cure the infirmities,” and that the plaintiffs, including the University of Puerto Rico Retirement System, have had “adequate opportunity to amend” their pleadings.

The complaint alleged that investors “suffered a string of bad news” about problems with a mortgage-servicing software platform furnished by Altisource Portfolio Solutions called REALServicing. The plaintiffs alleged that Ocwen “failed to fix operational and technological deficiencies with REALServicing, and instead made materially false and misleading statements and omissions,” the judge wrote. The plaintiffs alleged that Ocwen misrepresented its progress in complying with requirements made by regulators as well as in straightening out problems with its servicing software.

The investors alleged those missteps caused stock prices to plummet from a high of $11.61 per share to $2.49 per share—a decline of nearly 80 percent.

The potential damages, the action claimed, were estimated to be more than $600 million, according to a news release Tuesday from Ocwen's legal team at Kramer Levin Naftalis & Frankel.

“We are very pleased that the court agreed with the core premise of our motion, namely, that none of the Ocwen public statements challenged by the plaintiff violated the nation's securities laws,” Kramer Levin partner John “Sean” Coffey said in the news release.

In addition to Coffey, the winning defense team includes Jonathan Wagner and Jason Moff with associates Adina Levine and Sara Lefkovitz. The team was assisted by co-counsel Jeffrey Allan Hirsch of the Fort Lauderdale office of Greenberg Traurig.

Plaintiff counsel includes J. Alexander Hood II and Patrick V. Dahlstrom of Pomerantz in New York, and Jayne Arnold Goldstein of Shepherd, Finkelman, Miller & Shah in Fort Lauderdale. They declined to comment on the decision.

The case is Carvelli v. Ocwen Financial, No. 9:17-cv-80500-RLR.