LendingTree Inc. is facing a demand from a mortgage company’s liquidating trust to pay a $68.5 million judgment against the online lending giant’s bankrupt subsidiary.
After five years of litigation, ResCap Liquidating Trust—created in Residential Capital LLC’s Chapter 11 reorganization in 2013—won the judgment in June against Home Loan Center Inc. (HLC) on claims that HLC sold it “defective” mortgage loans.
LendingTree is the parent of HLC and “expressly assumed” HLC’s liabilities, according to ResCap’s complaint in a Minnesota court.
ResCap also alleges that LendingTree is liable for HLC’s debts because it’s HLC’s “alter ego” based at the same Charlotte, ...
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