The nine buyers brought a lawsuit
against the Beemans, the Company, the
Lender, and the Appraiser for engaging in a
conspiracy to defraud, fraud, violations of the state's consumer protection act («Act»), and negligent misrepresentation.
In Smith v. First Family Financial Services, the Supreme Court of Alabama addressed allegations by borrowers
against a mortgage
lender and correspondent
lender alleging fraud, breach of fiduciary duty, and
conspiracy.