---
schema_version: "secwatch.filing_event.v1"
accession: "0001104659-25-054261"
form_type: "8-K"
ticker: "TWO"
cik: "0001465740"
company_name: "TWO HARBORS INVESTMENT CORP."
filed_at: "2025-05-29T23:59:59+00:00"
generated_at: "2026-05-20T05:42:48.196057+00:00"
event_type: "litigation"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Two Harbors records $198.9M contingency liability after court ruling in PRCM dispute

## Summary
- Court overruled company's objections; granted plaintiffs' summary judgment that Two Harbors had no cause to terminate management agreement.
- Company expects to accrue $198.9M in contingency liability and expense for May 2025 for termination fee plus pre-judgment interest.
- Company's own summary judgment motion denied; counterclaims dismissed.
- Additional claims for which summary judgment was denied are not accrued as loss not probable or estimable.

## SEC filing metadata
- accession: 0001104659-25-054261
- form_type: 8-K
- ticker: TWO
- cik: 0001465740
- company_name: TWO HARBORS INVESTMENT CORP.
- filed_at: 2025-05-29T23:59:59+00:00
- event_type: litigation
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 8.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1465740/000110465925054261/0001104659-25-054261-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1465740/000110465925054261/tm2516502d1_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001104659-25-054261
- JSON: https://secwatch.observer/filing/0001104659-25-054261.json
- Plain text: https://secwatch.observer/filing/0001104659-25-054261.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.