Poulin | Willey | Anastopoulo Announces Class Action Lawsuit Filed Against Arbor Realty Trust, Inc. (ABR)
Poulin Willey Anastopoulo LLC announces that a class action has been filed in the United States District Court for the Eastern District of New York on behalf of all persons and entities that purchased the securities of Arbor Realty Trust, Inc. (“ABR” or the “Company”) (NYSE:ABR) between May 7, 2021 and July 11, 2024, both dates inclusive (the “Class Period”). The Company describes itself as a nationwide real estate investment trust (“REIT”) and direct lender, providing loan origination and servicing for commercial real estate, through two business segments – Structured Loan Origination and Investment Business (“Structured Business”), and Agency Loan Origination and Servicing Business (“Agency Business”).
The Complaint alleges that, throughout the Class Period, Defendants provided investors with false and/or materially misleading information concerning ABR’s operational and financial health, including its balance sheet loan book and net interest income in quarterly and annual reports filed with the SEC and during periodic earnings calls.
According to the Complaint, the truth was partially disclosed when on, March 14, 2023, Ningi Research published a report on ABR (the “Ningi Report”) claiming 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 market reacted quickly to the adverse news, causing ABR’s stock price to fall from$12.99 per share on March 13, 2024 to $12.12 per share on March 14, 2023, and then to $11.53 per share on March 15, 2024, a drop of $1.66 per share over the two day trading period, a decline of approximately 11%.
Next, the Complaint alleges that on December 5, 2023, Viceroy Research issued an in-depth analysis of the Company’s Jacksonville. Fl properties, finding that in an “industry plagued with delusion and bad decisions, ABR stands out as the worst of the worst” and Viceroy’s analysis of “ABR’s CLOs suggest its entire loan book is distressed and the underlying collateral is vastly overstated.” The market reacted quickly and the Company’s stock declined from $13.86 per share on December 4, 2024 to $13.67 per share on December 5, and then fell to $13.15 per share on December 6, 2023, a two day decline of $0.71, a fall of over 5%.
Finally, the Complaint alleges that on July 12, 2024, investor concerns were heightened when Bloomberg reported that ABR was “being probed by federal prosecutors and the Federal Bureau of Investigation in New York … with the “investigators questioning the Company’s lending practices and … claims about the performance of the Company’s loan book.” This new caused the Company’s stock price to fall from $15.53 per share on July 11, 2024, to $12.89 per share on July 12, 2024, a drop of $2.64 per share or almost 17%.
Investors who purchased or otherwise acquired (or currently own) ABR securities should contact the Firm before September 30, 2024, the 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 securities class action, please contact Ahmad Jackson at 803-222-222 or via e-mail at ahmad.jackson@poulinwilley.com.
Any additional questions may be directed to Stuart J. Guber, Esq, at stuart.guber@poulinwilley.com, the Firm’s Director of Shareholder Services and Securities Litigation, with almost 35 years of experience representing public pension funds, Taft-Hartley union pension plans and health & welfare funds, and high net-worth investors and other individuals in securities class actions and opt-out litigation.
Poulin | Willey | Anastopoulo has offices in Florence, Charleston, Ladson, Columbia, Greenville, Lexington, Myrtle Beach, Rock Hill, and Hampton, South Carolina. Charlotte and Lumberton, North Carolina. Atlanta, Albany, Athens, Augusta, Columbus and Macon in Georgia. Visit: RespectResults.com to learn more.
