"According to the complaint, Griffin invests millions of dollars annually to generate exclusive leads through its website. To protect that investment, the company's employment agreements prohibit LOs from copying or soliciting these leads for up to 36 months after leaving the company. Griffin believes former employees have stolen lists of leads provided to them while employed with plaintiff because they intend to continue to solicit and are actively soliciting business from those leads."
"The lawsuit claims that when the first allegedly diverted loan closed, WCL immediately wired the amount shown to have been diverted by the three former employees. But other loans based on Griffin's leads continued to be closed. In total, the defendants have diverted at least 203 customers, causing damages in excess of $3.71 million in lost revenue, the lawsuit states."
"WCL founder Daniel Iskander refuted the claims, saying anyone can sue anyone for any reason. This isn't the first time a competitor has tried to sue us for losing loan officers to the broker channel, he said. We operate within all state and federal laws and most importantly with integrity for our loan officers and our borrowers. There's absolutely no validity to any type of corporate theft in any way shape or form."
Griffin claims that it invests millions annually to generate exclusive online leads and that employment agreements bar loan officers from copying or soliciting those leads for up to 36 months after departure. Griffin alleges former loan officers stole lead lists and continued soliciting business, resulting in at least 203 diverted customers and more than $3.71 million in lost revenue. The complaint asserts breach of contract, conversion, trade-secret misappropriation and unfair competition. WCL's founder denied wrongdoing and said the company follows laws and acts with integrity. Similar litigation from loanDepot raises parallel recruitment and lead-transfer allegations.
Read at www.housingwire.com
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