United Wholesale Mortgage Merger Deal Subject Of Class Action Complaint

By KIMBERLEY HAAS An investor has filed a class action complaint claiming he and other shareholders were misled prior to a merger deal involving United Wholesale Mortgage. Lawyers for Richard Delman say false and misleading disclosures induced public stockholders of Gores Holdings IV, LLC to invest in a merger rather than redeem their shares, causing monetary damages. Company leaders for UWM and Gores announced the deal in September 2020, saying upon completing the transaction UWM would go public and be listed on NASDAQ under the ticker symbol “UWMC.” “The transaction values UWM at approximately $16.1 billion, or 9.5x the company’s estimated 2021 adjusted net income of approximately $1.7 billion,” a press release stated. Alec Gores, chairman and CEO of The…