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Monday, March 30, 2020

Freedom Mortgage Corp. alleges competitor accessed computers without authorization

By Noddy A. Fernandez | Feb 28, 2018

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LAS VEGAS (Legal Newsline) – A New Jersey mortgage company alleges a direct competitor solicited, diverted or attempted to divert customers through unlawful means.

Freedom Mortgage Corp. filed a complaint on Feb. 13 in the U.S. District Court for the District of Nevada against CrossCounty Mortgage Inc. over alleged violation of the Computer Fraud and Abuse Act.

According to the complaint, the plaintiff alleges that in February 2017, some of its employees decided to leave Freedom and started working for the defendant. The plaintiff alleges the defendant enticed or induced its former employees to violate their contractual obligations in order to benefit it. These employees allegedly used Freedom-owned computers and computer networks and Freedom-owned email accounts to send emails to customers and potential customers of Freedom away from Freedom and to CrossCountry. 

The plaintiff holds CrossCounty Mortgage Inc. responsible because the defendant allegedly violated the CFAA by accessing the plaintiff's computers and network through the plaintiff's then-employees.

The plaintiff requests a trial by jury and seeks award of damages, accounting and disgorgement, punitive damages, costs and disbursements and such relief as the court may deem equitable and just. It is represented by Russell J. Burke, Louis L. Chodoff and Christopher T. Cognato of Ballard Spahr LLP in Las Vegas.

U.S. District Court for the District of Nevada case number 2:18-cv-00270-APG-CWH

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Organizations in this Story

Ballard Spahr, LLPU.S. District Court for the District of Nevada