United Development Funding IV Shareholder Investigation - UDF
RADNOR, Pa., Dec. 11, 2015 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP has initiated an investigation on behalf of shareholders of United Development Funding IV (NASDAQ: UDF) ("UDF" or "the Company").
UDF shareholders who wish to discuss this investigation and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or at [email protected]. For additional information about this investigation, or to request information about this action online, please visit http://www.ktmc.com/united-development-funding-iv.
UDF operates as a real estate investment trust ("REIT") in the United States. The Company focuses on originating, purchasing and holding secured loans for the acquisition and development of land and properties.
On December 10, 2015, a report posted on the Harvest website asserted that UDF and affiliated companies exhibited "characteristics emblematic of a Ponzi scheme." 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, had declined to stand for reappointment as their auditing firm.
Following the release of that report, shares of UDF's stock declined $6.05 per share, or over 35%, to close on December 10, 2015 at $11.15 per share.
Later on December 10, 2015, UDF disclosed that the Company and certain of its affiliates "have been cooperating since April 2014 with a nonpublic fact-finding investigation being conducted by the Staff of the Securities and Exchange Commission." On December 11, 2015, shares of UDF's stock declined an additional $2.60 per share, or over 23%, to close at $8.55 per share.
UDF shareholders who wish to discuss this investigation and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or at [email protected]. For additional information about this investigation, or to request information about this action online, please visit http://www.ktmc.com/united-development-funding-iv.
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). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299 - 7706
(610) 667 - 7706
[email protected]
SOURCE Kessler Topaz Meltzer & Check, LLP
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