NEW YORK, Aug. 01, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of all persons or entities who purchased or otherwise acquired Arbor Realty Trust, Inc. (“ABR” or the “Company”) (NYSE: ABR) securities between May 7, 2021 and July 11, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint in the lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects, such as ABR’s operational and financial health, including its balance sheet loan book and net interest income.
The Complaint further alleges that investors discovered that these statements were false and/or materially misleading over the course of several corrective disclosures. First, the Complaint alleges that on March 14, 2023, NINGI Research published a report on ABR (the “NINGI Report”), claiming inter alia that “ABR has been hiding a toxic real estate portfolio of mobile homes with a complex web of real and fake holdings companies for more than a decade.” The Complaint alleges that in response to the report, ABR’s stock price fell from $12.99/share on March 13, 2023 to $12.12/share on March 14, 2023 and then $11.53/share on March 15, 2023.
The Complaint further alleges that on December 5, 2023, Viceroy published an in-depth study of ABR’s Jacksonville, FL properties (the “Viceroy Report”). The Complaint alleges that based on their findings, Viceroy declared that in an “industry plagued with delusion and bad decisions, ABR stands out as the worst of the worst. Viceroy’s dive into ABR’s CLOs suggest its entire loan book is distressed and underlying collateral is vastly overstated.” The Complaint also alleges that in response to the report, ABR’s stock price declined from $13.86/share on December 4, 2023 to $13.67/share on December 5, 2023 and then $13.15/share on December 6, 2023.
The Complaint further alleges that on July 12, 2024, several months later, investor concerns stemming from the NINGI Report and Viceroy Report intensified when Bloomberg reported that ABR was “being probed by federal prosecutors and the Federal Bureau of Investigation in New York.” According to the news report cited in the Complaint, “[t]he investigators are inquiring about lending practices and the company’s claims about the performance of their loan book.” The Complaint also alleges that in response to the report, ABR’s stock price declined from $15.53/share on July 11, 2024 to $12.89/share on July 12, 2024.
Investors who purchased or otherwise acquired shares of ABR should contact the Firm prior to the September 30, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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