Mortgage Company Fails to Block Successor Liability in Wage Case

CrossCountry Mortgage LLC can’t prevent workers it inherited through an acquisition of LendUS LLC from suing it for alleged wage violations that piled up under its predecessor, a federal judge said.

CrossCountry argued that the workers didn’t adequately allege that it could be liable as a successor-in-interest to LendUS, so the case should be thrown out. But the company’s challenge to the workers’ wage-and-hour allegations was “not persuasive,” the US District Court for the Northern District of California said Tuesday, rejecting the call to dismiss the complaint.

Three workers allege LendUS failed to pay loan assistants and processors for all ...