The lawsuit, now six months old, accuses UWM of conspiring with brokers to steer homebuyers into costly mortgages, allegedly generating billions in unjust fees. UWM recently filed a motion to dismiss the case, claiming that Boies Schiller is colluding with Hunterbrook Capital, a hedge fund that has taken a short position on UWM’s stock.
In a court response, Boies Schiller characterized UWM’s allegations as a mere distraction, labeling the attempt to sanction them as a “side-show.” The firm firmly stated that no Hunterbrook-associated entity is financing the class action, asserting, “We have no interest—none—in any trade by any Hunterbrook entity on UWM’s stock.”
UWM, based in Pontiac, Michigan, opted not to comment further. The lender has consistently denied the allegations leveled against it in the lawsuit. Boies Schiller also declined to comment beyond its previous statement, which described UWM’s collusion claims as “baseless.”
The lawsuit was initiated in April on behalf of four homebuyers, following an investigation published by Hunterbrook Press that scrutinized UWM’s business practices. Boies Schiller noted that the nonprofit Hunterbrook Foundation provided crucial data analysis and research prior to filing.
In its September motion, UWM accused both Hunterbrook and Boies Schiller of orchestrating a “coordinated campaign” aimed at damaging UWM’s reputation and stock value. Boies Schiller, in its latest court documents, dismissed these accusations as “specious” and insisted that the plaintiffs had full control over the timing and initiation of the action.
The case is officially known as Escue v. United Wholesale Mortgage LLC, filed in the U.S. District Court for the Eastern District of Michigan.
