By KIMBERLEY HAAS
Leaders at loanDepot are saying they are pleased with a federal judge’s decision to grant a preliminary injunction against six former employees and CrossCountry Mortgage.
The employees are currently employed by CrossCountry and are accused of taking sensitive customer information from loanDepot to their new employer.
On Tuesday, U.S. District Court Judge Edmond Chang of the Northern District of Illinois issued the injunction.
Chang found that “there is a likelihood of success on all of loanDepot’s claims against the defendants.”
loanDepot’s lawyers claim that CrossCountry and the six former employees misappropriated loanDepot trade secrets; that CrossCountry aided and abetted contractual and fiduciary violations by these recent hires; and that CrossCountry was responsible for tortious interference with the former employees’ contracts with loanDepot, according to a press release.
Chang enjoined CrossCountry and the former employees from accessing, using, or reproducing numerous loanDepot documents and data.
They are also to refrain from contacting or soliciting numerous loanDepot customers.
“We are extremely pleased with the court’s ruling. loanDepot will continue to vigorously protect its interests,” loanDepot President and CEO Frank Martell said in a statement.
James Witz, lead outside counsel for loanDepot, said the court’s ruling underscores the likelihood of success on their claims in this case.
“loanDepot takes the protection of its trade secret and confidential information, and contractual agreements with its employees, very seriously,” Witz said in a statement.
loanDepot is represented in this matter by Witz, Jessica Pizzutelli, and Colton Long of Littler Mendelson, PC., according to the press release.
Both loanDepot and CrossCountry operate nationally.
loanDepot was launched in 2010 and has a team of more than 10,000 members, according to their website.
“In our first decade alone, we’ve grown to become the nation’s fifth largest retail mortgage lender and the second largest nonbank retail originator, funding more than $275 billion since inception,” the website says.
loanDepot is headquartered in Irvine, Calif., and has offices nationally.
CrossCountry was founded in 2003 and has more than 8,000 employees, according to their website.
They are headquartered in Cleveland, Ohio, and have more than 600 branches in all 50 states.
It was announced on Tuesday that CrossCountry was named the official mortgage partner of the 20th annual Lockheed Martin Armed Forces Bowl.
Follow Us On Twitter:
Read More Articles By Kimberley Haas:
Monetary Policy: How Will The Fed’s Rate Hike Affect Home Affordability?
Gallus Insights Aims To Help Lenders Make Data-Driven Decisions