Consumers accuse companies of
misrepresentation on loan payments
DALLAS, Dec. 13,
2023 /PRNewswire/ -- Noted trial
attorney Rogge Dunn has filed
two class action lawsuits in state court in Dallas County against Loan Depot, Inc., and
Cardinal Financial Corporation alleging the companies violated the
Texas Deceptive Trade Practices Act, as well as claims of negligent
misrepresentation and gross negligence against Texas homeowners.
According to the lawsuit, Loan Depot, Inc. (NYSE: LDI) and
Cardinal Financial Corporation (NASDAQ: CFNL) provided financial
services to hundreds of thousands of individuals to induce them
into entering refinancing agreements where they would encourage
borrowers to skip the first one or two payments on their new loan,
resulting in the borrower paying added interest over the course of
the loan.
The filing alleges both
companies, "made promises and representations, and/or failed to
provide important and relevant information to Plaintiffs and the
other members of the class relative to the Transactions. Many of
the deceived borrowers are veterans who had VA loans. The
false statements were made to induce Plaintiffs and the other
members of the class to induce them into entering the
Transactions." The negative results of the "skipped" payments were
never disclosed to the borrowers but collectively benefited the
lenders by tens of millions of dollars.
Both companies have rejected the class's efforts to seek an
amicable solution. Plaintiffs in the litigation include two
Dallas County residents, a
Bexar County resident and a
Taylor County resident.
"When you trust big companies with expertise and industry
knowledge, you expect them to be honest and give sound advice,"
said Mr. Dunn, a nationally recognized litigator for his
representation of high-level executives and companies in business
disputes. "Instead, Loan Depot and Cardinal Financial used their
position to exploit homeowners to their own benefit."
The firm expects more plaintiffs to be added to the class,
adding to the damages. Therefore, the relief category is currently
subject to being amended.
The cases are Angela Colonna,
et al. vs. Loan Depot, inc., et al., and Bernard Guinard, et al. vs. Cardinal Financial
Company, L.P. Both cases were filed in the District Court of
Dallas County, Texas.
Rogge Dunn Group, PC
Rogge Dunn Group has built a well-deserved reputation for
aggressive litigation, outstanding results, and attentive client
service. Led by founding partner Rogge
Dunn, the firm is well-known for successfully trying
high-profile business, financial, and employment disputes. This
trial experience fosters innovative strategies to obtain effective
settlements and minimize litigation risks for corporate and
individual clients. Based in Dallas, the firm tries cases in state and
federal courts in Texas and
throughout the United States.
Learn more about the firm at www.roggedunngroup.com.
Media Contact:
Tamlyn Sheng
800-559-4534
tamlyn@androvett.com
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SOURCE Rogge Dunn Group PC