Key facts
- Eighteen former Stockton Mortgage employees and Novus Home Mortgage deny allegations of trade secret misappropriation.
- The defendants admit to resigning from Stockton and joining Novus but dispute claims of wrongdoing.
- Stockton Mortgage's lawsuit, filed in October 2025, accuses the defendants of a conspiracy to divert borrowers and steal intellectual property.
- The defendants argue that Stockton Mortgage failed to identify protectable trade secrets and suffered no compensable damages.
- Novus Home Mortgage also denied any wrongdoing in its response.
Former employees of Stockton Mortgage Corp. have denied allegations of misappropriating trade secrets and interfering with their former employer's business after joining competitor Novus Home Mortgage. In filings with the U.S. District Court for the Northern District of Alabama, eighteen defendants responded to a lawsuit initially filed by Stockton in October 2025. The suit accused the defendants and Novus of orchestrating a "nefarious conspiracy" and "covert scheme" to divert borrowers and steal intellectual property.
The defendants admitted to resigning from Stockton Mortgage and accepting employment with Novus in similar roles. However, they denied engaging in any wrongdoing, including breach of fiduciary duty, tortious interference, and civil conspiracy. They further argued that Stockton Mortgage failed to state valid legal claims, identify protectable trade secrets, and that any information claimed as confidential was either publicly available or lacked independent economic value.
Novus Home Mortgage also denied any wrongdoing. Each defendant has requested the court dismiss the claims against them, award attorneys' fees and litigation costs, and grant a jury trial. The filings represent the defendants' responses and do not constitute a ruling on the merits of the case, which remains pending.