UWMC Shareholder Alert: UWM Holdings Corporation Securities Class Action Lawsuit - Investors With Losses May Contact Levi & Korsinsky

A single trading session erased more than a third of UWM Holdings' market value after the Company reported a $603.2 million interest rate derivatives loss, with the securities class action alleging investors were never told the Company had taken an over-hedged MSR position tied to the failed Two Harbors deal.

NEW YORK, Sept. 9, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in UWM Holdings Corporation (NYSE: UWMC) of a pending securities class action filed on behalf of shareholders who purchased securities between March 9, 2026 and August 5, 2026. Find out if you may qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

UWMC shares fell $0.64, or 34.78%, to close at $1.20 on August 6, 2026, on unusually heavy trading volume. Shares had traded as high as $4.04 on March 10, 2026, a Class Period peak. Investors have until October 13, 2026 to seek lead plaintiff status.

The Market Reaction to the August Disclosure

After the market closed on August 5, 2026, UWM reported second quarter results that included a $603.2 million interest rate derivatives loss, a $451.9 million quarterly net loss, and a 43.6% year-over-year decline in total equity. The following morning, during the Company's earnings call, management described the position as "over-hedged" in connection with the terminated Two Harbors Investment Corp. transaction, a deal originally valued at $1.3 billion. Trading volume spiked as the stock repriced.

How the Repricing Compares to Class Period Highs

• Class Period high: $4.04 per share on March 10, 2026
• Closing price after the disclosure: $1.20 per share on August 6, 2026
• Single-session decline: $0.64 per share, or 34.78%
• Reported interest rate derivatives loss: $603.2 million
• Reported second quarter net loss: $451.9 million
• Reported year-over-year decline in total equity: 43.6%

The complaint asserts that these figures reflect the removal of artificial inflation from the share price once information about the hedging position reached the market.

What the Complaint Says Was Missing From Prior Statements

The action charges that, during the Class Period, the Company did not disclose that it had departed from its longstanding practice of not hedging mortgage servicing rights, that the position taken ahead of the Two Harbors transaction was excessive, and that purported risk mitigation had instead created an excess hedging exposure. The pleading asserts that positive statements about the Company's business and prospects were therefore materially misleading or lacked a reasonable basis.

"When companies fail to disclose material information, shareholders may suffer significant losses. The complaint here alleges that UWMC investors were not told the Company had taken a hedging position outside its stated business model before a $603.2 million derivatives loss was reported." -- Joseph E. Levi, Esq.

Submit your information here or call (212) 363-7500.

ABOUT THE FIRM — For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Investors who suffered losses have until October 13, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the UWMC Lawsuit

Q: How much did UWMC stock drop? A: Shares fell approximately 34.78%, a decline of $0.64 per share, to close at $1.20 on August 6, 2026. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: When did UWM Holdings Corporation allegedly mislead investors? A: The Class Period runs from March 9, 2026 to August 5, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the UWMC class action filed in? A: The case was filed in the United States District Court for the Eastern District of Michigan, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do UWMC investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my UWMC shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP