NEW YORK, Feb. 11, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in United Development Funding IV ("United Development" or the "Company") (NASDAQ: UDF) of the February 19, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of Texas on behalf of all those who purchased United Development securities between June 4, 2015 and December 10, 2015 (the "Class Period"). The case, The Charles G. and Rose M. Fairbanks Living Trust v. United Development Funding IV et al, No. 3:15-cv-04055 (N.D. Tex. Dec 23, 2015) was filed on December 23, 2015, and has been assigned to Judge Sam R. Cummings.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by operating a Ponzi-like real estate scheme and by failing to disclose that the Company was being investigated by the Securities and Exchange Commission.
Specifically, on December 10, 2015, the investor website Harvest Exchange published a report asserting that the United Development group, which operates publicly listed and public non-trading REITs, would create successive United Development Funding entities in order to raise capital to bail out prior vintages.
After this news, United Development's share price fell $6.05 from $17.20 per ADR on December 9, 2015 to close at $11.15 per share on December 10, 2015, or approximately 35.2%.
After the market closed that day, the Company disclosed that since April 2014 it has been cooperating in a nonpublic fact-finding investigation by the SEC into its operation and management of previous United Development related entities and funds.
On this news, United Development's share price fell $2.50 from $11.15 per share on December 10, 2015 to close at $8.55 per share on December 11, 2015, or approximately 22.4%.
Request more information now by clicking here: www.faruqilaw.com/UDF . There is no cost or obligation to you.
If you invested in United Development securities June 4, 2015 and December 10, 2015 and would like to discuss your legal rights, visit www.faruqilaw.com/UDF. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding United Development's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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Telephone: (877) 247-4292 or (212) 983-9330
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