After an origination team departed loanDepot in April of this year, loanDepot slammed the seven ex-employees and their new employer, CrossCountry Mortgage, with a lawsuit alleging they “hatched and implemented a scheme to loot loanDepot’s business.”
The Orange County, California-based retail lender, led by CEO Anthony Hsieh, in a lawsuit filed in San Diego Superior Court in June, alleged that the seven employees — the Meredith-Rogers team¸— stole client lists and funneled business away from loanDepot to one of its rivals, CrossCountry Mortgage.
In its May lawsuit, loanDepot alleged that after the “mass exodus” of the employees, an internal investigation revealed a “coordinated, premeditated and illicit plan” to lure its employees away, and “systematically begin the transfer of an entire existing pipeline of loans originated at loanDepot to CrossCountry Mortgage.”
LoanDepot sought a jury trial, a temporary restraining order, a preliminary injunction, compensatory, punitive, economic and consequential damages, and royalty for alleged misappropriation of trade secrets.
The court denied loanDepot’s request for the restraining order. Instead, it required the lender to conference with its ex-employees and reach an agreement for a preliminary injunction.