Arbor Realty Trust (ABR) Faces Reported DOJ/FBI Investigation, Stock Tanks - Hagens Berman

SAN FRANCISCO--(BUSINESS WIRE)--Hagens Berman urges Arbor Realty Trust, Inc. (NYSE: ABR) investors who suffered substantial losses to submit your losses now.

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Arbor Realty Trust, Inc. (ABR) Investigation:

Arbor Realty Trust faces mounting pressure as federal authorities reportedly investigate its lending practices and loan book performance, according to sources cited by Bloomberg on July 12, 2024. This news sent Arbor's stock price tumbling over 20% during intraday trading.

The investigation follows a series of critical reports published by Viceroy Research, a forensic financial research group. Since November 16, 2023, Viceroy has issued 22 reports on Arbor, raising concerns about the company’s financial health and the value of its loan portfolio.

Viceroy’s initial report, “Arbor Realty – Slumlord Millionaires,” labeled Arbor's stock “uninvestable” due to its allegedly poor loan quality and overvalued collateral. The report further claimed that Arbor's entire loan book is distressed and unlikely to be refinanced elsewhere.

More recently, Viceroy’s May 9, 2024 report, titled “Arbor – Fraud,” alleged that Arbor has engaged in a “con” by financing purchases of its foreclosed assets through off-balance sheet entities controlled by former Arbor associates. These purchases were reportedly financed with Arbor’s own equity capital and loans originated by Arbor itself.

Viceroy has also directed its criticism towards Arbor's auditor, Ernst & Young (EY). In a July 11, 2024 email to EY, Viceroy reportedly highlighted "overwhelming evidence" suggesting Arbor's loan book is significantly impaired. The email further accuses Arbor of manipulating delinquency rates through loan modifications and financing structures that appear to be self-serving.

Arbor has not yet responded publicly to the latest federal investigation or Viceroy's specific allegations. The company previously maintained the accuracy of its financial statements and declined to comment on short seller reports. Over the past year, Arbor’s stock is down over 18 percent.

These developments have prompted shareholder rights firm Hagens Berman to commence an investigation into potential violations of the securities laws.

“We are investigating whether Arbor may have concealed distressed deals and other assets,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Arbor and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Arbor investigation, read more »

Whistleblowers: Persons with non-public information regarding Arbor should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [e-mail].

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.