CrossCountry Mortgage will pay nearly $2.1 million to a former employee over age discrimination claims after losing an appeal in late May.

Cheryl Shephard, a former senior accountant at CCM, filed a lawsuit in 2022 alleging she was terminated from the role she had held since 2016 because of her age. She was 65 at the time.

CCM has denied the allegation, saying she was let go as part of a cost-saving reduction in force and, in part, due to poor performance. 

Before her termination on June 20, 2022, Shephard’s duties were gradually reassigned to Adam Scher, a 29-year-old accounting manager hired earlier that year. Records show four other younger employees were also hired into the accounting department between February and June 2022, appearing to contradict CCM’s cost-savings claim.

Shephard and her legal team presented proof that convinced an Ohio jury that age played a factor in the accountant losing her job. As a result, the jury awarded Shephard $544,997 in compensatory damages for back pay, front pay, pain and suffering and mental anguish, over $1 million in punitive damages, and monies to cover legal fees.

CrossCountry challenged the outcome on six grounds, including questioning parts of the trial process, which caused “jury confusion.” 

However, on May 29, the Ohio Eighth District Court of Appeals in Cuyahoga County sided with the previous ruling, noting the review of the trial transcripts “shows that Shephard put forth sufficient direct and indirect evidence to establish a prima facie case of discrimination.” 

“Reasonable minds cannot come to one conclusion favoring CCM because there is sufficient evidence to support every element of Shephard’s age discrimination claim,” the appeals court wrote.

CrossCountry declined to comment on legal matters. Mortgage Professional America first reported on the decision of the appeals court.

The mortgage lender has faced a slew of litigation in recent years, though most suits have been related to alleged poaching claims against the firm.

Earlier this year, CCM and Loandepot moved to settle two separate poaching and theft of trade secrets lawsuits. Loandepot filed the complaints in 2022, accusing its competitor of raiding its branches and taking with employees thousands of confidential company documents.

CrossCountry and American Mortgage Network also reached an undisclosed settlement over poaching-related claims.