In a legal filing in an Alabama federal court, 18 former employees and Novus have formally denied allegations of trade secret theft and business interference brought by Stockton Mortgage.
The denials cover all counts in the lawsuit, which accused the defendants of misappropriating confidential data and soliciting clients after departing the firm. Novus, a mortgage lender, joined the former workers in rejecting the claims.
The case highlights the high-stakes nature of non-compete and trade secret disputes in the mortgage industry, where employee moves can shift significant loan volume. No court date has yet been set.
The litigation remains in its early stages, with discovery likely to reveal whether the former staff indeed took proprietary pricing models or client lists. Both sides have retained legal counsel in the Northern District of Alabama.