UWM Holdings Corporation faces a securities class action lawsuit after its shares fell 34% on Aug. 6, 2026, when the company disclosed a $451 million net loss, roughly $603 million in hedging losses tied to its failed acquisition of Two Harbors Investment Corp., and a recapitalization plan that would massively dilute existing shareholders. UWM had agreed in December 2025 to acquire Two Harbors for about $1.3 billion in UWM stock and entered hedging transactions against Two Harbors' mortgage servicing rights, or MSR (rights to collect mortgage payments). Two Harbors later terminated the agreement after reaching a cash deal with CrossCountry Mortgage. Hagens Berman is investigating whether UWM adequately disclosed the risks and extent of its hedging exposure. The proposed class period runs from March 9 through Aug. 5, 2026, with a lead plaintiff deadline of Oct. 13, 2026. UWM shares had declined about $3.65, or 75%, between the acquisition announcement and Aug. 6.