UWM shares plunge 34.8% after $603.2 million derivatives loss

  • Wolf Popper LLP filed a securities class action against UWM Holdings Corporation.
  • UWM reported a $603.2 million derivatives loss and a $451.9 million quarterly net loss.
  • Investors seeking lead-plaintiff status must file motions by October 13, 2026.

Wolf Popper LLP said a securities class action has been filed against UWM Holdings Corporation on behalf of investors who purchased or otherwise acquired UWM common stock from March 9, 2026, through August 5, 2026. The lawsuit, pending in the United States District Court for the Eastern District of Michigan, centers on UWM’s interest-rate hedging strategy during its proposed acquisition of Two Harbors Investment Corp. The transaction, agreed in December 2025 as an approximately $1.3 billion all-stock deal, was later terminated after Two Harbors accepted a competing offer. The complaint alleges that UWM departed from its traditional practice of relying on mortgage origination as a natural hedge for mortgage servicing rights and instead established a significant hedge, becoming over-hedged while preparing for the acquisition. UWM reported a $603.2 million loss on interest-rate derivatives for the second quarter of 2026, contributing to a $451.9 million quarterly net loss. UWM shares fell $0.64, or approximately 34.8%, to close at $1.20 on August 6. Investors seeking lead-plaintiff status must file a motion by October 13, 2026.

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