NEW YORK, Dec. 11, 2015 /PRNewswire/ -- Wolf Popper LLP is investigating potential securities fraud claims on behalf of investors in United Development Funding IV securities ("UDF IV") (NASDAQ: UDF). United investors can contact Fei-Lu Qian at 877.370.7703 or email@example.com for more information.
On December 10, 2015, a report posted on the Harvest website asserted companies affiliated United Development Funding (including UDF IV), "exhibits characteristics emblematic of a Ponzi scheme," as newer UDF entities were used to raise funds to bail out older UDF entities, which "continually needed a source of liquidity." The report further stated, among other things, that: (i) "[v]isits 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.
On the news of the report, UDF IV stock declined $6.05 or more than 35%, to close at $11.15 per share on December 10, 2015. On December 11, 2015, the stock declined more than $3.00 per share or 30% on intraday trading.
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