Shephard claimed she was wrongfully terminated in June 2022 at age 65 after being asked to transfer key accounting responsibilities — accruals, fixed assets and prepaids — to younger, higher-paid colleagues.
Shephard earned an annual salary of $69,657. According to court documents, between February and June 2022, CCM hired five younger employees with salaries ranging from $85,000 to $170,000. The period coincided with a rising mortgage rate environment and declining origination volumes.
A spokesperson for CCM said the company does not comment on legal matters. Mortgage Professional America first reported on the decision.
“Shephard was never told she was being included in a mass layoff or reduction in force,” the court ruling states. CCM told her the position was eliminated. But Shephard testified that when she asked if others in the accounting department were also being laid off, she was told no. “She believed Novak eliminated her because she was old.”
The decision from the Eighth Appellate District Court of Appeals in Cuyahoga County on May 29 affirms a lower court ruling.
Shephard sought compensatory and punitive damages. In June 2024, a jury sided with her on the age discrimination claim against CCM, awarding $544,997 in compensatory damages. The jury did not find in her favor on the disability claim and cleared Novak of any claims.
CCM, which produced more than 8,000 documents during discovery, denied the allegations and requested a new trial, citing jury confusion.
But the final judgment included $1 million in punitive damages, $419,052 in attorneys’ fees, $41,538 in litigation expenses and $30,478 in prejudgment interest — totaling $2.1 million. CCM posted a $2.49 million surety bond.
CCM is facing another case of age discrimination allegations that is still active in Pennsylvania. Penny Smith, a former regional operations manager, accuses the company of age discrimination and wrongful termination for her refusal to participate in illegal activities.
Smith was an employee at the California-based retail lender Flightwhich she joined in November 2018 before transitioning to CCM when it acquired the firm in 2022. According to her, between January and September 2022, the lender “systemically laid off older female employees.”
