Mortgage Firm Can’t Nix Worker Win After Skipping Court Filings

CrossCountry Mortgage LLC failed to convince a federal judge to set aside a default entered after the company suddenly quit defending itself against workers’ wage-and-hour allegations.

The company “vigorously defended” the suit—including unsuccessfully arguing it shouldn’t be liable for alleged wage violations that piled up under its predecessor, LendUS LLC—until earlier this year, when it skipped some court deadlines, the US District Court for the Northern District of California said. Its “conduct in this litigation was deliberate in that it was designed to manipulate the legal process and take advantage of Plaintiffs,” the Thursday order said.

The workers allege ...