Prospect Mortgage Can't Shake Loan Officer OT Suit

Law360, New York (May 31, 2011, 3:39 PM EDT) -- A California federal judge on Friday refused to nix a putative class action accusing residential mortgage lender Prospect Mortgage LLC of misclassifying its loan officers and loan originators as exempt from overtime pay and minimum wage.

U.S. District Judge Lawrence K. Karlton denied Prospect Mortgage's motion to dismiss the suit or strike the plaintiffs' class allegations, finding that the plaintiffs had sufficiently pled their claims.

The lawsuit, filed in October by three former Prospect Mortgage loan officers, claims that the company willfully violated the Fair Labor...
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