Fortress-Owned Mortgage Lender Faces Penalties In S.C. Lawsuit

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.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note