Loan Depot, Inc. and Cardinal Financial Corporation Face Class Action Disputes Over Deceptive Practices

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. 

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SOURCE Rogge Dunn Group PC