LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Arbor Realty Trust, Inc. (“Arbor” or the “Company”) (NYSE: ABR) securities between May 7, 2021 to July 11, 2024, inclusive (the “Class Period”). Arbor investors have until September 30, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On March 14, 2023, NINGI Research published a report alleging, among other things, that Arbor had been “hiding a toxic real estate portfolio of mobile homes with a complex web of real and fake holdings companies for more than a decade.” On this news, Arbor’s stock price fell $1.46, or 11.2%, over two consecutive trading days to close at $11.53 per share on March 15, 2023, thereby injuring investors.
Then, on December 5, 2023, Viceroy Research published a report claiming that, in an “industry plagued with delusion and bad decisions, [Arbor] stands out as the worst of the worst.” The report further stated that the Company’s “entire loan book is distressed and underlying collateral is vastly overstated.” On this news, Arbor’s stock price fell $0.71, or 5.1%, over two consecutive trading days, to close at $13.15 per share on December 6, 2023.
Then, on July 12, 2024, Bloomberg reported that federal prosecutors and the Federal Bureau of Investigation were looking into Arbor regarding its lending practices and the Company’s claims about the performance of their loan book. On this news, Arbor’s stock price fell $2.64, or 17%, to close at $12.89 per share on July 12, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants: (1) provided investors with false and/or materially misleading information concerning its operational and financial health, including its balance sheet loan book and net interest income; (2) provided investors with this information in quarterly and annual reports filed with the SEC as well as orally during earnings conference calls; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Arbor securities during the Class Period, you may move the Court no later than September 30, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Arbor securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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