SAN FRANCISCO, Dec. 28, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts investors with losses over $100,000 of the February 19, 2016 lead plaintiff deadline in the securities fraud class action lawsuit filed against United Development Funding IV (NASDAQ: UDF ) related to allegations that a large portion of UDF’s 2015 distributions to shareholders were funded with borrowed money – similar to a Ponzi scheme.
If you purchased UDF securities between June 4, 2014 and December 10, 2015 , contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing UDF@hbsslaw.com or visiting https://www.hbsslaw.com/cases/UDF . The lawsuit was filed in the U.S. District Court for the Northern District of Texas and investors have until February 19, 2016 to move the court to participate as a lead plaintiff.
On Dec. 10 and 11, UDF shares were down over 50% as a short-seller described the company as something akin to a Ponzi scheme. The short-seller suggested that UDF and other “REITs pay off old investors with proceeds from freshly raised debt and equity capital.”
While Hagens Berman is also investigating potential claims against the alleged short-sellers, the newly filed complaint alleges claims against UDF and UDF senior executives that that UDF misled investors by failing to disclose the liquidity relationships between UDF funds, including that UDF IV provided liquidity to UDF I, UMT and UDF III, among other affiliates, further exacerbating the problem and perpetuating the scheme. The complaint also charges UDF with operating a Ponzi-like real estate investing scheme which prompted an undisclosed investigation by the SEC. As a result of the Company’s nondisclosures of material information, their class period statements about UDF IVs business, operations, and prospects, were false and misleading and/or lacked a reasonable basis in violation of the securities laws.
If you are an investor who lost more than $100,000 in your investments in UDF securities and would like to learn more about this lawsuit, your ability to participate as a lead plaintiff, or our investigation, please contact us for your no-cost evaluation.
Whistleblowers: Persons with non-public information regarding UDF should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at (510) 725-3000 or email UDF@hbsslaw.com .
About Hagens Berman Hagens Berman is headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com . Read the Firm’s Securities Newsletter , and visit the blog . For the latest news visit our newsroom or follow us on Twitter at @classactionlaw .
Reed Kathrein, 510-725-3000
