Two Harbors Investment Corp. announced that it expects to record a $198.9 million contingency liability. This liability is related to an ongoing federal complaint, indicating a significant legal challenge facing the company.
This substantial accrual represents a material financial uncertainty for the company. The potential payment of this amount could impact Two Harbors' liquidity and overall financial performance.
Investors will closely monitor developments regarding this federal complaint. The accrual reflects management's assessment of a probable and estimable loss, highlighting a notable risk to the company's financial stability.
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