UWM Holdings (UWMC) Extends Losses Amid Class Action Lawsuit Uncertainties

We recently published 10 Stocks Investors Are Dumping. UWM Holdings Corp. (NYSE:UWMC) is one of the worst performers on Monday.

UWM Holdings extended its losing streak to a third consecutive day on Monday, dropping 6.35 percent to finish at $5.60 apiece as investors continued to unload positions amid uncertainties in an ongoing class action lawsuit that alleged the company of scheming with brokers to push mortgages higher for homebuyers.

In an 87-page decision last week, US District Judge Brandy McMillion dismissed most allegations by the plaintiffs, including racketeering, saying that the latter had not plausibly shown that UWM Holdings Corp. (NYSE:UWMC) caused them harm.

Still, the judge said that plaintiffs could pursue claims for now after UWM Holdings Corp. (NYSE:UWMC) violated a federal law that protects consumers in mortgage loan transactions.

Commenting on the decision, UWM Holdings Corp. (NYSE:UWMC) said: “This decision confirms the entire case is nearly resolved in our favor and underscores that there was no merit from the start to the allegations.”

It said it was confident that it would prevail on the remaining claims.

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Disclosure: None. This article is originally published at Insider Monkey.