Company: TWO-PC
Filing Date: 2025-05-29
Form Type: 8-K
Source: 0001104659-25-054261
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Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-05-29
Form: 8-K
Item: Item 8.01
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Item 8.01      Other Events.  

As previously disclosed, on July 15, 2020, Two Harbors Investment Corp.
(the “ Company”) provided PRCM Advisers LLC with a notice of termination of the management agreement between the parties (the
“ Management Agreement”) for “cause” in accordance with Section 15(a) of the Management Agreement. The Company
terminated the Management Agreement for cause on the basis of certain material breaches and certain events of gross negligence
on the part of PRCM Advisers in the performance of its duties under the Management Agreement. On July 21, 2020, PRCM Advisers filed a
complaint against the Company in the United States District Court for the Southern District of New York (the “ Court”). Subsequently,
Pine River Domestic Management L. P. and Pine River Capital Management L. P. were added as plaintiffs to the matter. As amended, the complaint
(the “ Federal Complaint”) alleges, among other things, the misappropriation of trade secrets in violation of both the Defend
Trade Secrets Act and New York common law, breach of contract, breach of the implied covenant of good faith and fair dealing, unfair competition
and business practices, unjust enrichment, conversion, and tortious interference with contract. The Federal Complaint seeks, among other
things, an order enjoining the Company from making any use of or disclosing PRCM Advisers’ trade secrets, proprietary, or confidential
information; damages in an amount to be determined at a hearing and/or trial; disgorgement of the Company’s wrongfully obtained
profits; and fees and costs incurred by the plaintiffs in pursuing the action. On November 8, 2023, the Company and the plaintiffs filed
motions for summary judgment, seeking judgment in their favor on the pending claims and counterclaims. Each party opposed the other party’s
motion for summary judgment.

On March 31, 2025, a magistrate judge issued a report and recommendations
(the “ R& R”) on the parties’ motions for summary judgment. The R& R recommended that the Company’s motion
for summary judgment be denied in its entirety, and that the plaintiffs’ motion for summary judgment be denied in part and granted
in part. On April 30, 2025, the Company filed objections to the R& R. On May 23, 2025, the objections were overruled by the Court.
The plaintiffs’ motion for summary judgment was granted to