What Should Arbor Realty Trust, Inc. Investors Know After 29.14% Stock Drop? The Law Offices of Frank R. Cruz Outlines Securities Fraud Class Action Lead Plaintiff Deadline

Lawsuit alleges Arbor Realty Trust, Inc. made misleading statements to investors from February 27, 2026 to October 30, 2026; lead plaintiff motions are due January 8, 2027

LOS ANGELES, Nov. 13, 2026 /PRNewswire/ -- The Law Offices of Frank R. Cruz today announced a class action lawsuit against Arbor Realty Trust, Inc. ("Arbor Realty" or the "Company") (NYSE: ABR) on behalf of investors who acquired the Company's securities from February 27, 2026 to October 30, 2026. Filed on November 9, 2026, the case is Greenbaum v. Arbor Realty Trust Inc. et al., United States District Court Eastern District of New York, Case No. 1:26-cv-07231.

If you lost money on Arbor Realty Trust, Inc. securities, submit your Arbor Realty Trust, Inc. loss information by January 8, 2027 to learn about participating in the lawsuit.

Arbor Realty Trust, Inc. class action timeline

• Class period begins: February 27, 2026
• Class period ends: October 30, 2026
• Complaint filed: November 9, 2026
• Lead plaintiff motion deadline: January 8, 2027

What happened?

On May 8, 2026, before the market opened, Arbor Realty issued a press release announcing first quarter 2026 results, including net income for the quarter of $0.6 million, compared to net income of $30.4 million for the same quarter in the prior year. The Company had 19 non-performing loans with an unpaid principal balance of $481.5 million, before related loan loss reserves of $16.1 million, compared to 26 non-performing loans with a UPB of $569.1 million, before related loan loss reserves of $10.2 million as of December 31, 2025. During the related conference call held the same day, the Company's Chief Executive Officer, Ivan Kaufman, stated the Company was "pushing our timetable out a little bit" to resolving nonperforming and subperforming loans.  Further, the Company's Chief Financial Officer, Paul Elenio, purported to reassure investors that the Company maintained its "expectation that we will resolve the bulk of our delinquent loans by the end of the year." Elenio stated, "This should put our REO assets between $250 million and $300 million by the end of '26 and greatly improve our run rate of income for the future."

 On this news, Arbor Realty stock fell $0.96, or 11.75%, to close at $7.21 on May 8, 2026, thereby injuring investors.

Then, on October 30, 2026, before the market opened, Arbor Realty issued a press release announcing its financial results for the third quarter of 2026. Among other things, the Company reported a GAAP net loss of $(85.4) million and that the Company would suspend its quarterly cash dividend. The Company revealed the number of nonperforming loans had increased from 19 to 32 and they had a UPB of $647.6 million, before related loan loss reserves of $41.9 million. During the related earnings call, Defendant Kaufman disclosed the Company "ended the third quarter with approximately $750 million of delinquencies and around $500 million of REO assets for total nonperforming assets of roughly $1.25 billion, which is up around $200 million from last quarter's numbers."

On this news, Arbor Realty stock fell $0.88, or 29.14%, to close at $2.14 on October 30, 2026, thereby further injuring investors.

What is the Arbor Realty Trust, Inc. lawsuit about?

The Arbor Realty Trust, Inc. securities lawsuit alleges that, between February 27, 2026 and October 30, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Arbor Realty Trust, Inc.'s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) the loans Defendants described as "ring-fenced" were not contained; (2) the Company lacked a reasonable basis to represent that the Company would resolve nearly all existing delinquencies by year-end 2026; (3) the Company could not reasonably reduce its REO balance at the pace predicted by year-end 2026; (4) the resulting losses, reserves, and impairments threatened the Company's earnings and its ability to sustain its dividend; and (5) as a result, defendants' positive statements about Arbor Realty Trust, Inc.'s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

"According to the complaint filed against Arbor Realty Trust, Inc., the Company, among other things, did not disclose that the loans Defendants described as "ring-fenced" were not contained. The January 8, 2027 deadline is a key date for Arbor Realty Trust, Inc. investors who want a voice in how this case moves forward," said Frank R. Cruz of The Law Offices of Frank R. Cruz.

What should Arbor Realty Trust, Inc. investors do now?

The Law Offices of Frank R. Cruz can help Arbor Realty Trust, Inc. investors evaluate potential claims to recover their losses.

Investors who want to serve as lead plaintiff in the Arbor Realty Trust, Inc. class action must file a motion with the Court by January 8, 2027. For more information, visit the Arbor Realty Trust, Inc. case page, email [email protected], or call 310-914-5007.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

Investors may retain counsel of their choice. Arbor Realty Trust, Inc. investors who bought during the class period may also take no action and remain absent class members. No class has been certified yet in the Arbor Realty Trust, Inc. case.

Questions and answers about the Arbor Realty Trust, Inc. lawsuit

Who is eligible? Investors who bought Arbor Realty Trust, Inc. securities between February 27, 2026 and October 30, 2026 and lost money may be class members, and may seek lead plaintiff appointment by January 8, 2027.

What does a lead plaintiff do? The lead plaintiff is appointed by the court to represent all class members and direct the Arbor Realty Trust, Inc. class action.

Must I be lead plaintiff to share in a recovery? No, Arbor Realty Trust, Inc. investors can take no action and remain absent class members.

How are attorneys' fees handled? The Law Offices of Frank R. Cruz works on contingency, so Arbor Realty Trust, Inc. investors pay no attorneys' fees up front. Any attorneys' fees and litigation expenses come only from a recovery, if there is one, and require court approval.

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Related links

• Arbor Realty Trust, Inc. case page, The Law Offices of Frank R. Cruz
• Complaint: Greenbaum v. Arbor Realty Trust Inc. et al., United States District Court Eastern District of New York
• Arbor Q3 2026 Results
• Arbor Realty Trust, Inc. SEC filings index, EDGAR
• The Law Offices of Frank R. Cruz

Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

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SOURCE The Law Offices of Frank R. Cruz, Los Angeles