STEVENSON, Md., Dec. 22, 2015 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Texas on behalf of purchasers of United Development Funding IV (Nasdaq: UDF ) (“UDF” or the “Company”) common shares during the period between June 4, 2014 and December 10, 2015, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until February 19, 2016 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in UDF common shares purchased on or after June 4, 2014 and held through the revelation of negative information during and/or at the end of the Class Period, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html . You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company common shares during the Class Period. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that subsequent UDF companies provide significant liquidity to earlier vintage UDF companies, allowing them to pay earlier investors such that if the funding mechanism funneling retail capital to the latest UDF company were halted, the earlier UDF companies would not be capable of standing alone, and the entire structure would likely crumble with investors left holding the bag, that UDF IV provided liquidity to UDF I, UMT and UDF III, among other affiliates, perpetuating the scheme, and that the Company was being investigated by the SEC.
According to the complaint, following the December 10, 2015 report published on the Harvest Exchange alleging that the Company was operating a Ponzi-like real estate scheme whereby successive UDF entities would raise capital to bail out prior vintages and the Company’s disclosure on the same day that UDF III and UDF IV had been cooperating since April 2014 with a nonpublic fact-finding investigation being conducted by the SEC, the value of UDF IV shares declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616 hoffman@browerpiven.com
