UWM Holdings Corporation (NYSE: UWMC) Securities Fraud Class Action

The UWM Holdings Corporation securities fraud class action lawsuit was filed on behalf of those who purchased or otherwise acquired UWM Holdings Corporation (“UWM”) (NYSE: UWMC) securities between March 9, 2026 and August 5, 2026, inclusive (the “Class Period”). Captioned Bond v. UWM Holdings Corporation, No. 26-cv-12862 (E.D. Mich.), the UWM class action lawsuit alleges that UWM and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.

If you lost money as a result of your UWM investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at [email protected]. 

COMPLAINT ALLEGATION SUMMARY:
UWM is a wholesale mortgage lender that engages in the origination, sale, and servicing of residential mortgage loans. In December of 2025, UWM and Two Harbors Investment Corp. (“Two Harbors”) signed an all-stock merger agreement valued at $1.3 billion. However, just a few months later in March 2026, Two Harbors terminated the agreement after CrossCountry Mortgage made a competitive cash offer that included an agreement to pay UWM’s termination fee. UWM’s countered this to no avail, resulting in a mandated negotiation waiver period that expired without a new agreement.

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) UWM deviated from its traditional strategy of not hedging its mortgage servicing rights to take a major hedge position; (2) UWM over-hedged itself in anticipation of the Two Harbors transaction, which sought to expand UWM’s mortgage servicing rights; and (3) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

WHY DID UWM’S STOCK DROP?
On August 5, 2026, UWM reported its second quarter 2026 financial results, revealing a $603.2 million interest rate derivatives loss which contributed to a $451.9 million second-quarter net loss, and 43.6% drop in total equity year-over-year. Then, on an earnings call on August 6, 2026, UWM’s CEO revealed that UWM was over-hedged, disclosing that “[w]e don’t traditionally hedge our MSRs” but “when you’re going through and acquiring a company like Two Harbors and a massive MSR book… it created a little more risk. So . . . we did put a hedge on to protect against that risk and then a lot of things happen[ed]…and then obviously, the Two Harbors transaction went away. And so a confluence of events that created a hedge loss.” On this news, the price of UWM stock fell nearly 35%.

THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired UWM securities during the Class Period to seek appointment as lead plaintiff in the UWM class action lawsuit. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including being recognized in Chambers & Partners USA 2026 as a Band 1 Top Firm in Securities and Class Actions, Legal 500’s Tier 1 Rankings for Securities and M&A Litigation, The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.