|
|
Employees of American Home Mortgage have filed a class action lawsuit against the company, claiming it failed to keep promises made when the company they worked for was acquired by American Home.
According to an announcement Friday from the law firms of Rosen Preminger & Bloom LLP; Clouse Dunn Hirsch LLP; and Feinberg, Renaker & Jackson, P.C., the plaintiffs were employed at Principal Financial Group’s residential mortgage unit. American Home reportedly acquired the operation in early 2003, and hired approximately 400 existing employees. In an unrelated deal, Citigroup purchased Principal Residential Mortgage Inc. in July. The employees claim their new employer agreed in writing to consider their time at the Principal in determining their vesting for American Home’s 401k plan and to contribute extra funds to the plan “to compensate the workers for an additional retirement benefit they had with their old employer.” But instead of keeping the promises, the employees allege American Home lengthened the required vesting time and never made the extra contributions. “They promised to keep our prior benefits in place and make us whole if we joined American Home,” plaintiff Bill Williams reportedly said. “And then they reneged on their promise.” The complaint was filed in Suffolk County, N.Y., according to the announcement. “This is a lawsuit being brought by only two individuals,” American Home spokesman John Lovallo told MortgageDaily.com. “One being a current employee, one being a former employee. “We think we’re on the right side of the issue,” Lovallo added — noting that the company, which doesn’t consider the lawsuit a material issue, does not normally handle legal issues via the media. |
|
Sam Garcia has been in mortgage lending since 1980, and is publisher of MortgageDaily.com and MortgageChronicle.com. email:Â [email protected] |
FREE CALCULATORS TO HELP YOU SUCCEED
Tools for Your Next Big Decision.
Amortization Calculator
Affordability Calculator
Mortgage Calculator
Refinance Calculator
FHA Mortgage Calculator
VA Mortgage Calculator
Real Estate Calculator
Tags
Pre-Approval Resources!
Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…
Resource Center
Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.
TOP SEARCHED TOPICS
Your mortgages approval starts here.
Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.
Stay Up To Date with Today’s Latest Rates
Mortgage
Today’s rates starting at
Home Refinance
Today’s rates starting at
Home Equity
Today’s rates starting at
HELOC
Today’s rates starting at