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Two Harbors calls UWM lawsuit ‘frivolous,’ slams management for $600M hedge loss
['Flávia Furlan Nunes', 'Housingwire Automation', 'Logan Mohtashami', 'Brooklee Han', 'Jonathan Delozier', 'Richard Lawson']
HousingWire
UWM has sued TWO, alleging breach of contract and fraud while seeking more than $500 million in damages.
The REIT argued that the failed deal was actually driven by UWM’s market performance and governance concerns.
In the lawsuit, UWM alleged TWO sabotaged the vote by withholding retail investor information.
But TWO countered that by the time of the scheduled March vote, UWM’s declining share price left the proposed consideration at about 20% below its book value.
After the merger was terminated, TWO said UWM publicly expressed relief and referred to the REIT as a “melting ice cube.”