The complaint filed by Robbins LLP centers on the period between March 9, 2026, and August 5, 2026. According to the filing, UWM deviated from its traditional business model by taking on significant hedge positions in anticipation of acquiring Two Harbors Investment Corp. That $1.3 billion deal collapsed in March after a competing cash offer from CrossCountry Mortgage surfaced.

Investors allege that UWM failed to disclose the extent of its over-hedging, which ultimately backfired when the merger fell through. The financial fallout became public on August 5, 2026, when the firm reported a $603.2 million loss on interest rate derivatives, contributing to a total second-quarter net loss of $451.9 million. CEO Mathew Ishbia later confirmed during an earnings call that the company had been over-hedged to protect against the specific risks of the Two Harbors transaction. Following these disclosures, UWM shares plummeted $0.64, or 34.78%, closing at $1.20 on August 6.

Shareholders who acquired securities during the class period have until October 13, 2026, to file for lead plaintiff status. The firm is litigating on a contingency basis, meaning no upfront costs are required for participating investors.