Billionaire Gores Sued Over United Wholesale Mortgage SPAC Deal

An investor sued private equity billionaire Alec Gores and other architects of United Wholesale Mortgage LLC’s blank-check merger, claiming they sold out ordinary shareholders because the deal’s lopsided structure gave them a windfall no matter how it fared.

The lawsuit targets Gores Group LLC affiliates backing the special purpose acquisition company that combined with the lender to take it public as UWM Holdings Corp. It doesn’t name UWM or its billionaire CEO Mat Ishbia—who recently bought the NBA’s Phoenix Suns and the WNBA’s Phoenix Mercury—as defendants.

The transaction’s backers “hastily negotiated the merger through a flawed and unfair process” and ...