Lawsuit seeking class action status names Sprout, CEO, and affiliate Recovco Mortgage Management as defendants.
Two former employees have filed a lawsuit against Sprout Mortgage on behalf of all former staff seeking to recover unpaid wages and other compensation from the mortgage lender that abruptly closed last week.
The lawsuit, which seeks class action status, was filed July 8 in U.S. District Court for the Eastern District of New York by the law firm Menken Simpson Rozger LLP on behalf of plaintiffs Nathaniel Agudelo of Florida and Helen Owens of New Jersey. Both are described as former closing disclosure specialists employed by Sprout Mortgage.
The lawsuit names as defendants Recovco Mortgage Management LLC, Sprout Mortgage LLC, and Michael Strauss, Sprout’s CEO. The lawsuit states that both Recovco and Sprout are incorporated in Delaware but have offices at 90 Merrick Ave. in East Meadow, N.Y.
“Upon information and belief, at all relevant times, Corporate Defendants operated as a single integrated enterprise and held themselves out as Recovco and Sprout interchangeably,” the lawsuit states. “For example, upon information and belief, employees of Corporate Defendants received paychecks and offer letters purporting to be from Sprout, but employees’ ADP benefits accounts are affiliated with Recovco.”
The suit further notes that a filing with the Rhode Island Secretary of State office indicates that Recovco Mortgage LLC “used the fictitious name of ‘Sprout Mortgage’ in...
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