LOS ANGELES--(BUSINESS WIRE)--The Wagner Firm reminds investors of the upcoming February 19, 2016 deadline to file a lead plaintiff motion in the class action filed on behalf of a class (the “Class”) of investors who purchased United Development Funding IV (“UDF IV” or the “Company”) (Nasdaq: UDF) securities between June 4, 2015 and February 4, 2016, inclusive (the “Class Period”). UDF IV investors are encouraged to contact Avi Wagner, Esquire, of The Wagner Firm, at 310-201-9150 to discuss their legal rights.
Today, Scott Gordon of NBC 5 News in Dallas announced that the FBI "raided the office" of UDF IV, and that "agents were seen carrying boxes out of United Development Funding on the 1300 block of Municipal Way and loading the boxes into large trucks." Upon this news, trading in UDF IV stock was halted, dropping more than 50% before being frozen.
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that subsequent 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 capable of standing alone, and the entire structure would likely crumble with investors left holding the bag; (3) that UDF IV provided liquidity to UDF I, UMT and UDF III, among other affiliates, further exacerbating the problem and perpetuating the scheme; (4) that, as such, Defendants were operating a Ponzi-like real estate investing scheme; (5) that the Company was being investigated by the SEC; and (6) that, as a result of the foregoing, Defendants’ statements about UDF IV’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you purchased shares of UDF IV during the Class Period you may move the Court no later than February 19, 2016 to request appointment as lead plaintiff, or if you have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Avi Wagner, Esquire, of The Wagner Firm, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 491-7949, by e-mail at firstname.lastname@example.org, or visit our website at http://thewagnerfirm.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.