SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of purchasers of the securities of United Development Funding IV (“UDF IV” or the “Company”) (Nasdaq:UDF) between June 4, 2014 and December 10, 2015, inclusive (the “Class Period”).
If you purchased the securities of UDV IV during the Class Period, you may move the Court for appointment as lead plaintiff by no later than February 19, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
UDF IV investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the UDF IV Securities Class Litigation
UDF IV is a real estate investment trust under the larger United Development Funding (“UDF”) umbrella. The action alleges that, throughout the Class Period, UDF IV and certain of its officers failed to disclose: (1) that successive UDF companies provide significant liquidity to earlier vintage UDF companies, allowing them to pay earlier investors; (2) that if the funding mechanism funneling retail capital to the latest UDF company were halted, the earlier UDF companies would not be able capable of standing alone, and the entire structure would likely crumble with investors left holding the bag; (3) that UDF IV provided liquidity to United Development Funding I, United Mortgage Trust and United Development Funding III (“UDF III”), among other affiliates, further exacerbating the problem and perpetuating the scheme; (4) that, therefore, Defendants were operating a Ponzi-like real estate investing scheme; and (5) that the Company was being investigated by the Securities and Exchange Commission (“SEC”).
On December 10, 2015, a report was published on the Harvest Exchange alleging that the Company was operating a Ponzi-like real estate scheme, whereby successive UDF entities would raise capital to bail out prior vintages. On this news, the price of UDF IV stock fell $6.05 per share, or 35.17%, from its closing price of $17.20 on December 9, 2015, to close at $11.15 per share on December 10, 2015, on heavy trading volume. After the market closed that day, the Company issued a press release disclosing that UDF III and UDF IV have been cooperating since April 2014 with a nonpublic fact-finding investigation by the SEC. On this news, UDF IV’s stock price dropped an additional $2.60 per share, or 23.32%, to close at $8.55 per share on December 11, 2015, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for thirteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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