The Pontiac, Michigan-based company is seeking to recover more than $500 million in alleged damages it claimed were created by Two Harbor's "willful breaches of contract and cover-up." The legal filing claimed UWM had almost achieved stockholder approval for its transaction when Two Harbors terminated the agreement. After a bidding war, which included UWM making an all-cash alternative offer of $12.50 per share, Two Harbors stockholders ultimately approved the CrossCountry Mortgage final offer of $12 per share. In the second quarter, UWM lost $451.9 million , which largely consisted of a mark-to-market hit because of a hedge position tied to an anticipated Two Harbors mortgage servicing rights transaction, the company said. What is happening with the Cross-Country-Two Harbors mergerThe CrossCountry-Two Harbors merger was supposed to close on Aug. 3 , but as of Aug. 10, it still hadn't.