Subprime Lenders Face $48 Million in Possible Damages
Posted May 8, 2007 9:13 AM CST
By Debra Cassens Weiss
A jury verdict against three subprime lenders accused of bait-and-switch advertising could be tripled to nearly $48 million.
A competitor sued NovaStar Financial Inc. of Kansas City, Mo., and two smaller lenders, contending their ads on bankrate.com were misleading. An Orange County, Calif., jury on Friday awarded $15.9 million in damages, according to the Wall Street Journal (sub. req.).
A lawyer for the plaintiff, American Interbanc Mortgage LLC, told the newspaper that the judgment could be tripled because of antitrust violations.