Saxon Reports $1.4MM Hit

Saxon Capital Inc., Glen Allen, Va., has announced it will take a $1.4 million pretax charge to its third-quarter earnings as a result of a settlement of a Fair Labor Standards Acts case.The case involves its subsidiary, America's MoneyLine Inc., and allegations that loan officers worked more than 40 hours per week and did not receive overtime compensation. Even after the pretax charge, the company remained highly profitable. Saxon originally announced third-quarter earnings of $17.5 million ($0.58 per share). After the charge, this fell to $16.6 million ($0.55 per share). A spokeswoman for Saxon said the company was unable to comment any further on the settlement. However, the second-quarter Securities and Exchange Commission filing shows that some 223 current or former America's MoneyLine loan officers have opted in to the collective action, which was filed at the end of January in a federal court in California.