Oct 14 (Reuters) - Law firm Boies Schiller Flexner is
pushing back against litigation misconduct claims in a proposed
class action against United Wholesale Mortgage, hoping to derail
the home lending giant's bid to dismiss the case and recoup
legal fees.
The six-month-old lawsuit alleged that UWM conspired with
brokers to force home buyers into expensive mortgages and
pocketed billions of dollars in excess fees.
UWM last month asked the court to throw out the case and
sanction the plaintiffs' lawyers at Boies Schiller, arguing that
the firm is in league with a hedge fund that is shorting UWM
stock.
In a court filing on Friday, Boies Schiller denied colluding
with the hedge fund, Hunterbrook Capital, calling UWM's bid to
sanction the firm a "side-show." It said no entity associated
with Hunterbrook was paying for the proposed class action, and
that the law firm has "has no interest - none - in any trade by
any Hunterbrook entity on UWM's stock."
Pontiac, Michigan-based United Wholesale Mortgage declined
to comment on Monday. The lender has denied the allegations in
the lawsuit.
New York-based Boies Schiller declined to comment. It
pointed to an earlier statement that called United Wholesale's
collusion claims a "baseless attempt to further distract from
the underlying issues" in the case.
A Hunterbrook representative did not immediately respond to
a request for comment.
Boies Schiller filed the lawsuit in April on behalf of four
home buyers after Hunterbrook's media arm, Hunterbrook Press,
published an investigation questioning the mortgage company's
practices.
Boies Schiller has said the nonprofit Hunterbrook Foundation
shared data analysis and research with the law firm before the
lawsuit was filed.
In its request for sanctions and dismissal in September, UWM
accused Hunterbrook and Boies Schiller of mounting a
"coordinated campaign to disparage its business and destroy its
stock value."
Boies Schiller in its new filing said UWM had made "specious
allegations" of professional misconduct.
"Counsel and plaintiffs - without qualification - had
complete control over whether and when to commence this action,"
the law firm said.
The case is Escue v. United Wholesale Mortgage LLC, U.S.
District Court for the Eastern District of Michigan, No.
2:24-cv-10853.
For plaintiffs: John Zach and Marc Ayala of Boies Schiller
Flexner; and Brandon Hubbard of Dickinson Wright
For defendants: Jeffrey Jones, Stephen Cowen and Rebekah
Byers Kcehowski of Jones Day
Read more:
United Wholesale Mortgage defeats broker antitrust lawsuit
Mortgage lender United Wholesale sued by consumers alleging
billions in excess fees