Boies Schiller Flexner, a prominent law firm, has strongly refuted accusations of litigation misconduct in a proposed class action against United Wholesale Mortgage (UWM). The firm is defending itself against claims made by UWM, which recently requested the court to dismiss the class action and sanction the plaintiffs’ attorneys for alleged collusion with a hedge fund.
The class action, filed six months ago, accuses UWM of conspiring with mortgage brokers to push homebuyers into costly loans, pocketing billions in unwarranted fees. United Wholesale Mortgage responded in September, claiming that the law firm was in league with Hunterbrook Capital, a hedge fund shorting UWM stock, and suggested that this relationship influenced the lawsuit.
In a court filing on Friday, Boies Schiller vehemently denied any collusion with Hunterbrook Capital, calling UWM’s request for sanctions a “side-show.” The firm stated that no entity linked to Hunterbrook was financing the class action, and it had “no interest—none—in any trade by any Hunterbrook entity” involving UWM stock.
UWM, headquartered in Pontiac, Michigan, has denied the allegations in the lawsuit and declined to comment further on the matter.
Boies Schiller Flexner, based in New York, has dismissed the claims made by UWM as an unfounded attempt to distract from the central issues of the case. The law firm’s earlier statement described the accusations of collusion as “baseless,” and emphasized that the firm’s attorneys, along with the plaintiffs, had full autonomy over the timing and commencement of the lawsuit.
The lawsuit, filed in April, represents four homebuyers and follows a controversial investigation by Hunterbrook Press, the media arm of Hunterbrook Capital, into UWM’s business practices. Boies Schiller has confirmed that the nonprofit Hunterbrook Foundation provided valuable data analysis and research to support the legal case before it was filed.
In its request for sanctions and dismissal last month, UWM accused both Hunterbrook and Boies Schiller of engaging in a “coordinated campaign” aimed at undermining its business and stock value. Boies Schiller responded by labeling these allegations as “specious.”
The case, Escue v. United Wholesale Mortgage LLC, is being heard in the U.S. District Court for the Eastern District of Michigan (Case No. 2:24-cv-10853).
Representing the plaintiffs are John Zach and Marc Ayala of Boies Schiller Flexner, along with Brandon Hubbard from Dickinson Wright. The defense team includes Jeffrey Jones, Stephen Cowen, and Rebekah Byers Kcehowski of Jones Day.
As this legal battle continues to unfold, both sides are preparing for what could be a high-stakes litigation that could reshape the future of mortgage lending practices.
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