Securities Fraud Class Action Lawsuit Pending Against Arbor Realty Trust, Inc.: The Law Offices of Howard G. Smith Highlights Lead Plaintiff Deadline

Suit alleges Arbor Realty Trust, Inc. failed to disclose material facts to investors who bought from February 27, 2026 through October 30, 2026; investors may seek lead plaintiff appointment by January 8, 2027

BENSALEM, Pa.--(BUSINESS WIRE)--Arbor Realty Trust, Inc. ("Arbor Realty" or the "Company") (NYSE: ABR) is the subject of a securities fraud class action lawsuit filed on behalf of investors who purchased or otherwise acquired the Company's securities from February 27, 2026 through October 30, 2026, inclusive. The Law Offices of Howard G. Smith today reported the lawsuit, Greenbaum v. Arbor Realty Trust Inc. et al., which was filed on November 9, 2026 in the United States District Court Eastern District of New York (Case No. 1:26-cv-07231). The deadline for Arbor Realty Trust, Inc. investors to file a lead plaintiff motion is January 8, 2027.

Investors with losses on Arbor Realty Trust, Inc. securities can contact The Law Offices of Howard G. Smith about the Arbor Realty Trust, Inc. class action to discuss potential claims under the federal securities laws before the January 8, 2027 lead plaintiff deadline.

Important dates in the Arbor Realty Trust, Inc. case

• Complaint filing date: November 9, 2026
• Court: United States District Court Eastern District of New York
• Class period: February 27, 2026 through October 30, 2026, inclusive
• Deadline for lead plaintiff motions: 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.

Allegations in the Arbor Realty Trust, Inc. lawsuit

The Arbor Realty Trust, Inc. shareholder lawsuit alleges that, throughout the class period, 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 to investors 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 at all relevant times.

Arbor Realty Trust, Inc. investors who purchased or otherwise acquired securities during the class period may move the Court by January 8, 2027 to seek appointment as lead plaintiff in this putative class action.

"The lawsuit against Arbor Realty Trust, Inc. alleges that, among other things, the Company failed to tell investors that the loans Defendants described as “ring-fenced” were not contained. Arbor Realty Trust, Inc. investors who bought during the class period may be able to pursue their losses through this class action, and the January 8, 2027 lead plaintiff deadline is an important first date," said Howard G. Smith of The Law Offices of Howard G. Smith.

Next steps for Arbor Realty Trust, Inc. investors

Arbor Realty Trust, Inc. investors who suffered losses may contact The Law Offices of Howard G. Smith to learn about pursuing their claims. For more information, visit the firm's website, email [e-mail], or call [phone].

To be a member of the Arbor Realty Trust, Inc. class, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent class member. No class has been certified so far in the Arbor Realty Trust, Inc. case.

Common questions from Arbor Realty Trust, Inc. investors

Who is eligible? Investors who acquired Arbor Realty Trust, Inc. securities from February 27, 2026 through October 30, 2026 and suffered losses may qualify for the class in the Arbor Realty Trust, Inc. shareholder lawsuit.

Where is the Arbor Realty Trust, Inc. case pending? The Arbor Realty Trust, Inc. class action, Greenbaum v. Arbor Realty Trust Inc. et al., is pending in the United States District Court Eastern District of New York (Case No. 1:26-cv-07231).

Do I have to do anything to be in the Arbor Realty Trust, Inc. class? No, Arbor Realty Trust, Inc. investors need not take any action at this time and may remain absent class members.

Does it cost anything? The Law Offices of Howard G. Smith works on contingency, meaning Arbor Realty Trust, Inc. investors owe no attorneys' fees out of pocket. Any attorneys' fees and litigation expenses are paid solely from a recovery, if achieved, and require court approval.

About The Law Offices of Howard G. Smith

The Law Offices of Howard G. Smith has helped injured investors recover their money for more than 15 years. The firm prosecutes securities fraud, takeover, and derivative litigation against public companies and their officers, directors, and advisors in federal and state courts nationwide, and has helped clients recover hundreds of millions of dollars in losses. Clients speak directly with a lawyer, who will promptly answer any question.

Prior results do not guarantee a similar outcome.

Related links

• Arbor Realty Trust, Inc. case page, The Law Offices of Howard G. Smith
• 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 Howard G. Smith

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.