UWM faces securities class action over alleged hedge loss
A republished plaintiff-firm release says UWM Holdings faces a securities class action after a reported $603 million hedge loss, a failed Two Harbors acquisition and a sharp share-price drop.
A PR Newswire-republished plaintiff-firm release says UWM Holdings faces a securities class action tied to a failed Two Harbors deal and a reported hedge loss.
UWM Holdings Corp. faces a securities class action tied to an alleged hedge loss linked to its failed bid for Two Harbors Investment Corp., according to a plaintiff-firm release republished by PR Newswire.
The release says investors learned about the company’s exposure only after UWM disclosed a large loss and a plan to shore up its balance sheet. It says the company’s shares fell 34% on Aug. 6, 2026, after those disclosures.
According to the release, UWM announced on Dec. 17, 2025, that it would acquire Two Harbors for about $1.3 billion in UWM stock. It says Two Harbors later announced a separate merger agreement with CrossCountry Mortgage on Mar. 27, 2026, terminated the UWM deal and agreed to pay UWM a termination fee.
The release says UWM had entered hedging transactions tied to Two Harbors’ mortgage servicing rights portfolio, an asset whose value can move with interest rates and refinancing activity. It alleges UWM was “over-hedged,” meaning the hedge position became too large once the acquisition did not go through.
On Aug. 6, 2026, the release says, UWM disclosed a $451 million net loss, about a $603 million hedging loss, a sequential decline in total equity of about $615 million, or 38%, and a “massively dilutive recapitalization plan.” It quotes management as saying, “we were over-hedged,” and “obviously, the Two Harbors transaction went away.”
The plaintiff release says the class period runs from Mar. 9, 2026, to Aug. 5, 2026, and sets an Oct. 13, 2026, lead plaintiff deadline. It also says Hagens Berman is investigating the claims and seeking investor losses.
Because the source is a litigation announcement republished by PR Newswire, the claims should be treated as allegations unless and until supported by court filings or company disclosures.
The release does not provide a court filing number or a response from UWM.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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