The Complaint states that during the Class Period, Walter made false and/or misleading statements and/or failed to disclose: that the Company's subsidiary Ditech had a material weakness in its internal control over operational processes; that the Company lacked effective internal controls over financial reporting; and that as a result of the above, Walter's public statements were materially false and misleading at all relevant times. On March 14, 2017, Walter filed its Annual Report on Form 10-K with the Securities and Exchange Commission, reporting the Company's financial and operating results for the quarter and year ended December 31, 2016. Walter disclosed that "[a]s of December 31, 2016, we identified a material weakness in internal controls over operational processes within the transaction level processing of Ditech Financial default servicing activities."