RADNOR, Pa., Feb. 18, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP updates United Development Funding IV (NASDAQ: UDF) ("UDF IV" or the "Company") shareholders that the class period has been expanded in the securities fraud lawsuit filed against the Company to include purchasers of the Company's securities between June 4, 2014 and February 4, 2016, inclusive (the "Class Period").
UDF IV shareholders are advised that they may, no later than February 19, 2016, petition the Court to be designated as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check.
UDF IV shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (484) 270-1401 or at email@example.com. For more information about Kessler Topaz Meltzer & Check or this lawsuit, or to request information about this action online, please visit https://www.ktmc.com/new-cases/united-development-funding-iv.
UDF IV is a real estate investment trust ("REIT") under the larger United Development Funding ("UDF") umbrella. The Company originates, purchases, participates in, and holds for investment secured loans made for the acquisition and development of real property.
On December 10, 2015, a report posted on the Harvest website asserted that companies affiliated with UDF (including UDF IV) exhibit "characteristics emblematic of a Ponzi scheme" as "subsequent UDF companies provide significant liquidity to earlier vintage UDF companies, allowing them to pay earlier investors." On this news, shares of the Company's stock fell $6.05 per share, or more than 35%, to close on December 10, 2015 at $11.15 per share, on heavy trading volume.
Later on December 10, 2015, UDF IV disclosed that it had been "cooperating since April 2014 with a nonpublic fact-finding investigation being conducted by the Staff of the Securities and Exchange Commission (the 'SEC')." On this news, shares of the Company's stock declined an additional $2.60 per share, or 23%, to close on December 11, 2015 at $8.55 per share, again on heavy trading volume.
Most recently, on February 18, 2016, shares of UDF's stock declined 55% after NBC and Bloomberg reported that the FBI had raided UDF's offices and that "agents were seen carrying boxes away."
UDF IV shareholders who purchased their securities during the Class Period are reminded that they may, no later than February 19, 2016, petition the Court to be appointed as a lead plaintiff representative of the class.
A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Members of the purported class may petition the Court through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
SOURCE Kessler Topaz Meltzer & Check, LLP