Nexa Mortgage disputes the statement of a former lender damages lawsuit In several courts, the plaintiff’s lawyers called the legal action “malicious and frivolous” attempts to obstruct the case.

Damian Diaz is suing the broker for allegedly failing to pay himself and others compensation, including minimum and overtime wages and remote work expenses. Nexa plans to fight the case in a federal forum, seeking to have the complaint escalated from a San Diego court.

A California judge in May ordered Nexa to pay more than $13,000 in monetary sanctions over a discovery dispute. The Chandler, Arizona-based brokerage filed papers the next day in a federal court in California seeking to move the case there, the second attempt since Diaz filed his lawsuit in San Diego in 2022.

Attorney Matthew R. Miller of the Miller Law Firm in San Diego said on Diaz’s behalf that an investigation found that other employees were not fairly compensated by Nexa, allowing the lender to profit at the expense of employees.

“Since filing the complaint, Nexa has engaged in several legal maneuvers that appear solely aimed at concealing the discovery of the negatively impacted employees and the harm Nexa has caused them,” Miller wrote in an emailed statement.

Nexa did not respond to requests for comment.

The brokerage generated nearly $6 billion in loan volume last year, according to co-founder and CEO Mike Kortas. The company has 2,263 sponsored LOs, according to data from the Nationwide Multistate Licensing System. Nexa also has a 100% commission program in may.

Another former lender is suing Nexa for similar claims in a Los Angeles court. That lawsuit, which Nexa also tried unsuccessfully to elevate to federal court, is still pending.

Diaz worked for Nexa from his Southern California residence between 2020 and 2022, according to his complaint, spending less than half of his time working outside his home office. The LO alleges that he and others were improperly classified as exempt field salespeople, a dispute at the heart of other complaints about wages in industry.

The plaintiffs have not specified the damages they are seeking, but Nexa suggested in one of its filings that it would get more than $18 million for Diaz and others. The lender calculated that figure in an attempt to meet a threshold for bringing the case to federal court.

Nexa also argues that the case should be heard under the Class Action Fairness Act subject matter jurisdiction of the federal court. Plaintiffs say there is no class action representative given the developments in state court.

A California judge earlier this year granted Nexa’s request to compel arbitration for Diaz’s personal claims, but other claims under the Private Attorneys General Act intact. PAGA is a California law that allows employees to pursue civil penalties against defendants on behalf of themselves, others, and the state.

The parties are awaiting a federal judge’s ruling on Diaz’s request to send the case back to state court.

San Diego-based Cornerstone First Mortgage is also facing a class action complaint over one of its current LOs’ minimum wage. April Shakoor-Delgado’s lawsuit seeks overtime pay allegedly owed since 2021, and work-from-home pay for Illinois employees since 2019.

Like Diaz’s lawsuit, Shakoor-Delgado says Cornerstone failed to reimburse expenses such as internet and cell phone bills. The lawsuit alleges more than 100 potential class members, and does not specify what damages are being sought.

Attorneys for Cornerstone and Shakoor-Delgado did not respond to requests for comment.

Cornerstone originated more than $675 million in loans last year, according to Home Mortgage Disclosure Act data. The company also has 350 sponsored LOs, according to current NMLS data.

Professionals have filed numerous wage lawsuits against mortgage lenders in recent years, with some cases ending in settlements. Rocket Mortgage and United Wholesale Mortgage each reached $100 million in the past two years multimillion dollar settlements to close such claims.

CrossCountry Mortgage is also faced with newer, separate overtime pay and remote working expense claimsA federal judge last December dismissed an earlier Fair Labor Standards Act case against the Ohio-based industry giant, granting the lender’s request to send the case to arbitration.