NEW YORK, Dec. 11, 2015 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of United Development Funding IV ("United Development Funding" or the "Company") (NasdaqGS: UDF). Such investors are advised to contact Peretz Bronstein or his investor relations analyst Yael Hurwitz at firstname.lastname@example.org or 212-697-6484.
The investigation concerns whether United Development Funding and certain of its officers and/or directors have 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.
If you are aware of any facts relating to this investigation, or purchased shares of United Development Funding, you can assist this investigation by contacting Peretz Bronstein or his Investor Relations Analyst Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address, email and telephone number.
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.
Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 firstname.lastname@example.org
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