Saturday, 5 September 2015
Last updated 6 hours ago
Aug 15 2011 | 1:54pm ET
According to Fortress Investment Group, mortgage lender Springleaf Finance Corp. is worth $150 million. But the company could be on the hook for almost half that under a South Carolina state court ruling.
Springleaf, which Fortress bought 80% of from American International Group last year for $125 million, could face damages of as much as $68.7 million. The court ruled late last month that more than 9,000 people were entitled to damages of between $1,500 and $7,500 each under a state law protecting mortgage borrowers.
The court is still to issue a final order, which will include any possible penalties, in the case, which was filed in 1996.
Evansville, Ill.-based Springleaf said it will continue to "vigorously" defend itself against the lawsuit.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…