Citizens Bank Sues SoFi Over Alleged Poaching of Mortgage Employees
Citizens Bank filed a lawsuit against digital lender SoFi, accusing it of poaching over 30 mortgage employees since 2024. The bank claims that the departures have significantly impacted its operations in nine states and allege that SoFi orchestrated mass resignations at one Connecticut branch in June 2026. According to the suit, former employee Michael Daversa resigned along with six colleagues within minutes of each other and later sent confidential client data to his personal email before joining SoFi. Citizens claims these employees accounted for over $400 million in closed loans and nearly $5 million in revenue from the previous year. The bank argues that this exodus effectively eliminated its mortgage presence in Connecticut, with additional losses following shortly after. Citizens accuses SoFi of trade secret theft, interference with employment contracts, and aiding violations of noncompete clauses. SoFi has dismissed the allegations as baseless, stating it lawfully competes for talent like other organizations. The lawsuit also references a similar pattern from 2024 in Texas where multiple employees left Citizens to join SoFi.
Tickers: $SOFI