UWM Holdings faces a securities class action lawsuit after its shares fell 34% on Aug. 6, 2026, following disclosures of a roughly $603 million hedging loss tied to its failed acquisition of Two Harbors Investment Corp. The company also reported a $451 million net loss, a sequential 38% decline in total equity, and a recapitalization plan that would massively dilute existing shareholders. The proposed acquisition, announced Dec. 17, 2025, involved UWM stock and significant hedging transactions against Two Harbors' mortgage servicing rights, or MSR (rights to collect mortgage payments). Two Harbors terminated that agreement on March 27, 2026, after reaching a cash merger agreement with CrossCountry Mortgage. Hagens Berman is investigating whether UWM adequately disclosed its hedging exposure and is seeking investors with substantial losses during the March 9-Aug. 5, 2026, class period. The lead plaintiff deadline is Oct. 13, 2026.