The complaint alleges that UWM Holdings (NYSE: UWMC) misled shareholders between March 9 and August 5, 2026, regarding its mortgage servicing rights. According to the filing, the company took an outsized derivatives position anticipating a $1.3 billion merger with Two Harbors Investment Corp. When the deal collapsed and interest rates shifted, the company reported a $451.9 million net loss for the second quarter.

Following the disclosure of these financial setbacks, UWMC shares plummeted 34.78% on August 6, 2026, dropping to $1.20 per share. The legal action, filed by Levi & Korsinsky LLP, targets the company’s risk management disclosures and the subsequent impact on equity, which saw a 43.6% year-over-year decline. Pension funds and asset managers with holdings during this period are encouraged to evaluate their transaction records to determine potential eligibility for recovery.