NEW YORK, Dec. 11, 2015 /PRNewswire/ -- Bernstein Liebhard LLP is investigating whether United Development Funding IV ("UDF IV" or the "Company") (NASDAQ: UDF) and certain of its officers and/or directors violated the federal securities laws by making materially false or misleading statements or omissions regarding the Company's business.
UDF IV is a Texas-based real-estate investment trust (REIT) that lends money to develop properties and charges interest on the loans. On December 10, 2015, a report on UDF IV entitled "A Texas Sized Scheme" was published on the website Harvest Exchange. Among other things, the report asserted that the United Development umbrella, which operates publicly listed and public non-traded REITs, "exhibits characteristics emblematic of a Ponzi scheme." Specifically, according to the report, UDF IV has used money raised from retail investors to provide liquidity for UDF I and UDF III – "prior vintages" of United Development.
Following the publication of the report, the price of UDF IV stock plummeted over 35%, to close at $11.15 on December 10, 2015.
On the morning of December 11, 2015, a follow-up report was published on Harvest Exchange entitled "One Example of Many: How The Scheme Works, from One UDF Fund to the Next" in which the author claimed to prove that UDF IV has been providing liquidity to its affiliates.
Since the market opened, the stock has fallen another 32.64% to $7.51 per share in intra-day trading.
If you have lost money in UDF IV, are interested in discussing your rights as a UDF IV shareholder, and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs' firms in the country.
Bernstein Liebhard LLP 10 East 40th Street New York, New York 10016 (877) 779-1414 www.bernlieb.com
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SOURCE Bernstein Liebhard LLP