Two Harbors Investment Corp. (NYSE:TWO) disclosed on Wednesday that a stockholder filed a lawsuit in the U.S. District Court for the District of Maryland, alleging violations of federal securities laws related to proxy disclosures for its proposed merger with CrossCountry Intermediate Holdco, LLC (CCM).
Stockholder George Assad filed the complaint and seeks a temporary restraining order and preliminary injunction. The lawsuit claims that the proxy statement is incomplete and misleading.
The complaint seeks to enjoin the stockholder meeting and invalidate any proxies already submitted until additional disclosures are provided. If the merger closes, rescission and damages are requested.
A status conference is scheduled for Friday, with a hearing on the restraining order set for Monday, May 18, 2026. Two Harbors must respond by Friday evening.
Two Harbors believes the claims are without merit and disclosed the lawsuit to avoid delays. The company maintains a 10.79% dividend yield and expects to return to profitability.
