DEADLINE ALERT: Bronstein, Gewirtz & Grossman, LLC Reminds Investors of Class Action against United Development Funding IV (UDF) and Lead Plaintiff Deadline: February 16, 2016
NEW YORK, NY / ACCESSWIRE / February 10, 2016 / Bronstein, Gewirtz & Grossman, LLC reminds investors that a securities class action has been filed in the U.S. District Court for the Northern District of Texas on behalf of those who purchased shares of United Development Funding IV ("United Development Funding" or the "Company") (UDF) between June 4, 2014 and December 10, 2015, inclusive (the "Class Period"). Such investors are advised to contact Peretz Bronstein or his investor relations analyst Yael Hurwitz at info@bgandg.com or 212-697-6484.
UDF IV is a real estate investment trust under the United Development Funding ("UDF") umbrella.
The complaint alleges that, throughout the Class Period, UDF IV and certain of its officers failed to disclose that they were operating a Ponzi-like real estate scheme, and that United Development Funding was being investigated by the Securities and Exchange Commission.
The investigation concerns whether United Development Funding and certain of its officers and/or directors have violated violated of the Federal Securities Laws.
On December 10, 2015, the investor website Harvest (www.hvst.com) published a report asserting that the United Development Funding umbrella, which operates publicly listed and public non-trading REITs, "exhibits characteristics emblematic of a Ponzi scheme," as each successive UDF entity-e.g., UDF I, UDF II, UDF III-was used to raise funds to bail out "prior vintages" of UDF, which "continually needed a source of liquidity."
The report further stated, in part, that: (i) "visits to actual development sites, which serve as collateral to UDF development loans, show that, in numerous instances, there is no development and the collateral is still non-income producing, raw land 2, 3, 5 (as much as 10) years after loans were issued"; (ii) a lawsuit was filed in Texas state court in October 2015, naming UDF IV as a co-defendant in a case involving allegations of fraud, breach of contract, tortious interference and fraudulent transfer; and (iii) in November 2015, several UDF entities disclosed that their independent registered public accounting firm, Whitley Penn LLP, declined to stand for reappointment as auditor.
Following this news, the UDF stock fell $6.05, or 35.17%, to close at $11.15 on December 10, 2015.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint and to join this action, please visit the firm's site: http://www.bgandg.com/#!united-development-funding-iv/gvwqr. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in United Development Funding you have until January 19, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
SOURCE: Bronstein, Gewirtz & Grossman, LLC
