ABR Shareholder Alert: January 8, 2027 Lead Plaintiff Deadline in Arbor Realty Trust, Inc. Securities Class Action - Contact SueWallSt

Alert: Claims focus on alleged misrepresentations about Arbor Realty Trust's loan workout operations as non-performing loans increased from 19 at June 30, 2026 to 32 at September 30, 2026, with unpaid principal reaching $647.6 million.

NEW YORK, Nov. 12, 2026 /PRNewswire/ -- SueWallSt reminds purchasers of Arbor Realty Trust, Inc. (NYSE: ABR) securities of a pending securities class action seeking damages for investors who bought during the Class Period defined in the complaint. YOUR OPTIONS: Class members may be entitled to compensation without payment of any out-of-pocket fees. Find out if you might qualify for recovery or contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

Arbor's non-performing loans rose from 19 loans carrying $428.8 million in unpaid principal balance (UPB) at June 30, 2026, to 32 loans carrying $647.6 million at September 30, 2026. This represented a roughly 68% increase in the number of non-performing loans and a 51% increase in UPB. Separately, total nonperforming assets reached approximately $1.25 billion. The action contends shareholders suffered losses because this non-performing loan surge at the mortgage REIT allegedly contradicted management's assurances that troubled loans were being worked out.

Motions for lead plaintiff must be filed with the Court by January 8, 2027.

The Alleged 51% Increase in Non-Performing Loan Balances

A mortgage REIT like Arbor earns its income when borrowers keep paying interest. A loan that stops paying stops producing that income. The lender must then either restructure the loan or take back the property as real estate owned (REO), which carries its own costs.

As pleaded, Company presentation materials described Arbor as "Singularly Focused on Accelerating the Resolution of Non-Performing Assets." Plaintiffs allege the operating trend ran the other way, with a net increase of 13 non-performing loans in three months.

Loan Workout Management and the REO Pipeline

The Company had projected taking back between $50 million and $125 million of non-performing loans as REO from the second through fourth quarters of 2026. It also projected bringing the REO balance down to about $300 million by year-end. The filing states that REO instead stood at around $500 million at the end of the third quarter, alongside approximately $750 million of delinquencies, with one quarter left to close the gap.

"The complaint raises serious questions about whether investors received accurate information about how Arbor's loan workout operations were actually performing. Plaintiffs allege that while resolutions were being described as accelerating, the Company's non-performing loan UPB grew by more than $200 million in a single quarter." -- Joseph E. Levi, Esq.

Alleged Mortgage REIT Non-Performing Loan Impact by the Numbers

• Loan count: 19 non-performing loans at June 30, 2026 versus 32 at September 30, 2026, an increase of about 68%
• Unpaid principal: $428.8 million versus $647.6 million, an increase of about $218.8 million
• Related loan loss reserves: $31.1 million versus $41.9 million, up $10.8 million
• Delinquencies and REO: approximately $750 million and around $500 million, respectively, at quarter-end
• Total nonperforming assets: roughly $1.25 billion, up around $200 million from the prior quarter

Submit your information now or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured billions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the ABR Lawsuit

Q: What specific misstatements does the ABR lawsuit allege? A: The complaint alleges Arbor Realty Trust, Inc. made materially false or misleading statements about its ability to resolve delinquent loans and substantially reduce real estate owned (REO) assets by the end of 2026. It also challenges risk factors that framed adverse credit developments as possibilities. When the Company's third quarter 2026 results disclosed roughly $1.25 billion in total nonperforming assets, up around $200 million from the prior quarter, the complaint alleges the stock price declined.

Q: What court was the ABR class action filed in? A: The case was filed in the United States District Court for the Eastern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: Who are the defendants named in the ABR lawsuit? A: The complaint names Arbor Realty Trust, Inc. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What happens after I provide my information? A: Your trading history will be reviewed at no cost for an initial assessment of your potential eligibility.

Q: What if I already sold my ABR shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, such cases are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it may still be able to participate in any potential settlement or recovery.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

SOURCE SueWallSt.com