Class Action Filed Against UWM Holdings Over Financial Reporting Issues
News related to:UWM Holdings Corporation · 2 min read
Kaplan Fox & Kilsheimer LLP has announced that a class action lawsuit has been filed against UWM Holdings Corporation (NYSE: UWMC) on behalf of investors who purchased or acquired the company's securities between March 9, 2026, and August 5, 2026. The lawsuit alleges that the company failed to disclose critical information about its financial decisions and risks associated with its mortgage servicing rights (MSRs).
According to the complaint, UWM Holdings reported a significant second-quarter fiscal year 2026 financial loss of $603.2 million due to an interest rate derivatives loss. This contributed to a $451.9 million net loss for the quarter. Additionally, the company's total equity fell 43.6% year over year, reflecting the net loss and derivative-related charges. The lawsuit claims that the company deviated from its traditional strategy of not hedging its MSRs, instead taking a major hedge position in anticipation of the Two Harbors transaction.
On August 6, 2026, UWM Holdings held an earnings call where Chief Executive Officer Mathew Ishbia disclosed, "We were over-hedged, if you think of it that way, protecting against the Two Harbors transaction. We 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 happened… and then obviously, the Two Harbors transaction went away. And so a confluence of events that created a hedge loss."
The complaint further alleges that the company's positive statements about its business, operations, and prospects were materially misleading and lacked a reasonable basis. It claims that the company failed to disclose that it had deviated from its traditional strategy, over-hedged itself in anticipation of the Two Harbors transaction, and that the company's purported efforts to balance its risk created an excess hedging risk.
Kaplan Fox & Kilsheimer LLP, a nationally recognized law firm with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey, is handling the case. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.
The deadline for investors to move the court no later than October 13, 2026, to serve as a lead plaintiff for the purported class is approaching. Investors who purchased or otherwise acquired UWM Holdings securities between March 9, 2026, and August 5, 2026, and have suffered losses are encouraged to contact Kaplan Fox & Kilsheimer LLP to learn more about the lead plaintiff process. Investors need not seek to become a lead plaintiff to share in any possible recovery.