Arbor Realty Trust, Inc. (ABR) Class Action

Arbor Realty Trust (ABR) is under fire from investors who allege the mortgage real estate investment trust misled them about the health of its loan portfolio. A federal class-action lawsuit filed in the Eastern District of New York accuses ABR of providing false and misleading information about its financial performance between May 7, 2021 and July 11, 2024.

The complaint contends that ABR painted a rosy picture of its business, particularly the quality of its loan book, in public filings and earnings calls. However, this rosy view began to unravel on Mar. 14, 2023 when NINGI Research published a report questioning the value of ABR’s real estate holdings, specifically its mobile home portfolio. ABR’s stock price dipped following the report.

The pressure on ABR intensified on Dec. 5, 2023 when activist short seller Viceroy Research released a scathing report alleging widespread issues with the company's loan book. The report sent ABR’s stock price lower.

However, it was the dramatic plunge on July 12, 2024 that ignited investor fury. Following a Bloomberg report that federal prosecutors were investigating ABR’s lending practices, the company’s stock price plummeted, wiping out billions in shareholder value.

Investors allege that ABR’s misrepresentations artificially inflated its stock price, causing significant financial losses to those who purchased the company’s shares during the class period. The lawsuit seeks damages for the investors.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the ABR securities class action about?

We are investigating whether Arbor may have hid operational and financial risks from investors.

WHAT SHOULD I DO?

I worked at ABR. What should I do?

If you were an employee of ABR, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in ABR, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any ABR investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.