A major dispute has arisen in the mortgage lending industry after one company alleged that a rival orchestrated the mass hiring of its employees and used confidential information to solicit its customers. The complaint was filed by Lower, LLC in the United States District Court for the Southern District of Ohio on March 17, 2026, naming Atlantic Coast Mortgage, LLC as the defendant.
According to court documents, Lower alleges that Atlantic Coast Mortgage (ACM) engaged in a “coordinated effort” with Nicholas Gallagher—a senior executive at Lower—and other employees to systematically recruit Lower’s workforce and attract its customers. The filing states that ACM was aware or should have been aware that these employees were bound by covenants not to solicit other staff or customers but proceeded regardless. “ACM knew or should have known Gallagher and other Lower employees made covenants with Lower not to solicit Lower’s employees, customers, and referral sources but intentionally attempted to compete with Lower unfairly by tortiously interfering with Lower’s contractual and business relationships and theft of Lower’s confidential trade secret information,” the complaint reads.
Lower describes itself as a mortgage lender operating both digital platforms and more than eighty retail branches for home purchase mortgages, refinancing, and home equity solutions. ACM is identified as a direct competitor in residential mortgage lending. The complaint outlines that on February 9, 2026, twenty-six employees from various levels—including salespeople, loan officers, branch managers, divisional managers, operations managers, and notably the Chief Production Officer—resigned from Lower without notice. All immediately began working at ACM.
The document asserts that many of these former employees had signed agreements prohibiting them from soliciting fellow employees or customers for at least twelve months after leaving their jobs. These agreements also required them to keep proprietary information confidential. Despite this, it is alleged that Gallagher led efforts to transfer both personnel and customer relationships from Lower to ACM while still employed at Lower. “Upon information and belief…Gallagher…orchestrated the large-scale and coordinated effort to move certain Lower employees to ACM and to take Lower customers with them to ACM,” states the filing.
Lower further claims that prior to their departure, Gallagher and others accessed sensitive data such as loan pipelines and contact details for borrowers whose applications were pending with Lower. This non-public information was allegedly used by former employees acting on behalf of ACM to persuade borrowers to switch their business. The complaint also notes that five additional employees left for ACM on March 4, 2026 following similar solicitation efforts.
The legal action includes several counts: tortious interference with existing relationships; tortious interference with prospective business relationships; misappropriation of trade secrets under both federal law (the Defend Trade Secrets Act) and state law (the Ohio Uniform Trade Secrets Act); civil conspiracy; and unjust enrichment through constructive trust. In each count, Lower claims ongoing harm including lost profits, loss of goodwill, reputational damage, loss of loan originations—and asserts there is no adequate remedy at law except court intervention.
In support of its trade secrets claim under federal law (18 U.S.C. § 1836), the complaint states: “Lower’s confidential internal personnel information and non-public customer information constitute ‘trade secrets.'” It further alleges that ACM knowingly received this information after it was obtained without authorization.
For relief, Lower seeks preliminary and permanent injunctions preventing further solicitation or use of its confidential data; consequential damages; punitive damages; attorneys’ fees; costs; an accounting of all revenues derived by ACM from former customers or business opportunities originating at Lower; disgorgement of those profits; imposition of a constructive trust over any such gains; as well as any other remedies deemed appropriate by the court.
The case is being handled by attorneys Joseph F. Murray (Trial Attorney) and Jonathan P. Misny from Murray Murphy Moul + Basil LLP in Columbus, Ohio. The case number is 2:26-cv-00319.
Source: 226cv00319_Lower_LLC_v_Atlantic_Coast_Mortgage_LLC_Complaint_Southern_District_Ohio.pdf
