UWM, Mat Ishbia sued after Michigan State football coach’s harassment fallout

Brenda Tracy, who reported sexual harassment against former Michigan State University head football coach Mel Tucker, is suing United Wholesale Mortgage (UWM) and CEO Mat Ishbia.

Tracy claims the mortgage lender and its chief executive inserted themselves into a matter that was “none of their business.” UWM called the lawsuit fabricated, stating it “is about money and nothing more.”

According to the complaint filed March 23 in Oakland County, Michigan, Ishbia and UWM treated Tracy not as a “person whose privacy mattered, but as a problem to be managed once her complaint threatened Ishbia’s interest and investments tied to Tucker, the football program and the Michigan State University brand.” 

A UWM spokesperson vehemently denied the allegations.

“Ms. Tracy first sued Coach Tucker, but that case was thrown out of court. She then sued Michigan State, and the University has since filed a motion to dismiss that case as well,” the spokesperson told HousingWire. “Following those failures, her lawyers have filed a new complaint now naming Mat and UWM in an attempt to capitalize on the same unfounded allegations.”

The spokesperson noted the claims rely solely on communications from David Zacks, UWM’s former general counsel who passed away last year.

“That said, David Zacks and Mel Tucker were longtime friends, and their communications were personal in nature and had nothing to do with Mat Ishbia or UWM,” they said.

Tracy said in a social media post that “lawsuits are not just about money. They’re also about injunctive relief, which is what I am seeking.”

Tucker signed a 10-year, $95 million contract as Michigan State’s head football coach in November 2021 — which included $14 million directly contributed by Ishbia, the lawsuit claims. In December 2022, Tracy reported to the university’s Office of Institutional Equity (OIE) that Tucker sexually harassed her in April of that year. MSU terminated Tucker in October 2023 following an investigation in which Tracy participated.

The lawsuit alleges that during the investigation, Tucker’s attorney requested communications with Tracy’s office also be sent to Zacks at his UWM email address.

“Ishbia and UWM had a direct corporate stake in communications sent to or through Zacks because the emails and related electronic records belonged to UWM and were created, received, maintained, or routed through UWM systems while Zacks was serving as UWM’s general counsel,” the complaint states.

The lawsuit alleges Ishbia was interested in the case because he was MSU’s largest single donor at the time. It claims Zacks had no reason to be included in communications other than “keeping Ishbia in the loop,” noting Zacks was never identified on the record as Tucker’s attorney or adviser.

Disclosing confidential OIE information to people outside MSU violates statutory duty and constitutes unlawful action, according to the lawsuit. It alleges the information was used for reputational management and media purposes.

“Between December 2022 and January 2024, OIE staff transmitted emails or attachments concerning plaintiff’s investigation to one or more @uwm.com addresses,” the lawsuit states.

Tracy’s lawsuit includes counts of tortious interference with business expectancy, civil conspiracy, public disclosure of private facts and intentional infliction of emotional distress. The amount in controversy exceeds $25,000.