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Sprout Mortgage has agreed to pay $3.5 million to various lawsuits by former employees who accuse the now-shuttered non-QM lender of skipping out on their final paychecks, severance and health care coverage. So reports NEXT Mortgage News.
More than 800 former employees would get about 42% of their allegedly unpaid wages if the settlement is approved by a judge.
Sprout, affiliate Recovco Mortgage Management, and Sprout founder Michael Strauss did not admit wrongdoing as part of the settlement.