Wednesday, 28 September 2016
Last updated 40 min 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.