Arbor Realty Trust, Inc. (NYSE: ABR) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS SEPTEMBER 30, 2024.

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:
On March 14, 2023, NINGI Research published a report (the “NINGI Report”) disclosing that “Arbor 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 NINGI Report further divulged that “Arbor hid its toxic mobile homes portfolio to manipulate its stock price and avoid insolvency, $599 million of Arbor’s escrows evaporated overnight, [and] the company’s escrow balances and revenue are fake.”  Additionally, the NINGI Report stated that approximately $2.5 billion of Arbor’s repurchase facilities are subject to margin calls and that the company’s funding for such repurchase facilities are “drying up.”  Furthermore, according to the NINGI Report, Arbor’s current expected credit loss allowances “have been severely understated to boost earnings, Arbor’s financial statements for the last twelve years cannot be trusted, and auditors, as well as the [Company’s Board of Directors], turned a blind eye on misstatements and misconduct.”  On this news, the price of Arbor common stock declined $1.46 per share, or more than 11%, over multiple trading sessions, from a close of $12.99 per share on March 13, 2023, to close at $11.53 per share on March 15, 2023.

On December 5, 2023, Viceroy Research published a similar report concluding that, in an “industry plagued with delusion and bad decisions, Arbor stands out as the worst of the worst.  Viceroy’s dive into [Arbor’s] CLOs suggest its entire loan book is distressed and underlying collateral is vastly overstated.”  On this news, the price of Arbor common stock declined $0.71 per share, or more than 5%, over multiple trading sessions, from a close of $13.86 per share on December 4, 2023, to close at $13.15 per share on December 6, 2023.

Then, on July 12, 2024, Bloomberg reported that Arbor was “being probed by federal prosecutors and the Federal Bureau of Investigation in New York” related to “lending practices and the company’s claims about the performance of their loan book.”  On this news, the price of Arbor common stock declined $2.64 per share, or nearly 17%, from a close of $15.53 per share on July 11, 2024, to close at $12.89 per share on July 12, 2024.

The complaint alleges that, throughout the Class Period, 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.  Specifically, Defendants misrepresented and/or failed to disclose that: (1) Arbor’s operational and financial health was deteriorating due, in part, to the company’s hidden real estate portfolio of mobile homes; (2) the company’s entire loan book was distressed and the underlying collateral was vastly overstated; (3) accordingly, the company was at risk of regulatory scrutiny; and (4) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

What is a Lead Plaintiff?

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.