A California jury on Friday dismissed the final headline-grabbing claims former loanDepot chief operating officer Tammy Richards made against the lender in 2021.
Richards filed a lawsuit in September 2021 alleging that she was discriminated against by the lender, its former CEO Anthony Hsieh and former general counsel Peter Macdonald after blowing the whistle on what she called illegal company practices.
Richards alleged that the lender closed thousands of loans without proper documentation to boost its performance ahead of its initial public offering (IPO) on the New York Stock Exchange. She also claimed a “misogynistic frat” culture permeated the halls of the Orange County lender.
The claims against Hsieh and Macdonald were dismissed early in the legal saga, and in recent months the judge threw out the claims related to wrongful termination, various employment claims and loan origination practices, loanDepot said.
On Friday, a California jury found loanDepot not guilty on the final remaining claims involving gender discrimination and constructive discharge.
“We are pleased with the jury’s unanimous decision, which has vindicated our position on this case from the beginning,” loanDepot CEO Frank Martell said in a statement. “We take great pride in our commitment to fostering a professional workplace where we respect our colleagues and customers in the communities where we live and work.”
“We remain focused on the important work of Project North Star, which lays the foundation for a very positive trajectory in 2025 and beyond,” he added.
Richards, now an executive at Kind Lending, and her attorney, James Bryant, did not immediately respond to a request for comment.
A legal representative for loanDepot on Monday said the allegations made by Richards were “very damaging” and they were “eager to turn the page” on the legal saga, which began more than three years ago.
“It’s been quite a long time and there are human beings who are impacted by this litigation,” the rep said. “I’m sure that those folks can take a sigh of relief. And more importantly, there are over 5,000 loanDepot employees whose work, in many ways, was questioned by Ms. Richards. So I believe it’s even more important for all of team loanDepot to feel vindicated for the good work that we do and for the good work that we do for our customers.”
A spokesperson for loanDepot added that there were internal investigations into the company’s loan origination practices as a result of Richards’ claims. Fannie Mae, Freddie Mac, the SEC and CFPB also scrutinized the loans and found no evidence of wrongdoing, the spokesperson said.
loanDepot’s countersuit against Richards, which alleges she stole confidential information, remains ongoing.
