United Wholesale Mortgage (UWM) is facing a class-action lawsuit alleging misuse and misallocation of assets within its 401(k) retirement plan. The company has called the suit a “baseless claim.”

Filed Monday in a Michigan district court, the lawsuit accuses UWM of violating the Employee Retirement Income Security Act (ERISA) by using plan assets to reduce future employer contributions rather than reducing the plan expenses. The complaint alleges breaches of fiduciary duties of loyalty and prudence, as well as violations of ERISA’s prohibited transaction rules. The case was first reported by Bloomberg.

In a statement to HousingWire, a UWM details ⇒

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