Analyst Reports Arbor Realty (ABR) Facing “A Wave Of Foreclosures” - Hagens Berman

SAN FRANCISCO, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Arbor Realty Trust, Inc. (NYSE: ABR) investors who suffered substantial losses to submit your losses now.

Class Period: May 7, 2021 – July 11, 2024 Lead Plaintiff Deadline: Sept. 30, 2024 Visit: www.hbsslaw.com/investor-fraud/ABR Contact the Firm Now: ABR@hbsslaw.com                                             844-916-0895

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

Arbor Realty Trust is facing intensifying scrutiny as a series of damning reports and legal actions cast doubt on the company’s financial health and business practices.

The latest salvo came from activist short seller Viceroy Research on Sept. 3, 2024 in a report entitled “Arbor – Foreclosure Special.” In it, Viceroy concluded that “Arbor is facing a wave of foreclosures, as borrowers, unable to pay interest or deliver equity are walking away and handing Arbor their keys.”

In just one of multiple examples -- a foreclosure auction sale to an entity called Arbor SRV Circle at 1800 -- Viceroy noted that, while it is unclear whether Arbor SRVs are consolidated subsidiaries of Arbor, “[i]f they are then this is a damning indictment of their loan book: the only party willing to pay anything near the loan balance on the property is Arbor itself.”  

Last month, on August 17, analyst Bashar Issa, published a report on Seeking Alpha predicting the multifamily lender will be unable to cover its dividend by year-end. Issa cited a ballooning payout ratio, shrinking balance sheet, and the potential impact of a Federal Reserve rate cut as key factors behind his bearish outlook. The analyst warned risk-averse investors to stay clear of Arbor.

These events follow closely on the heels of a series of blistering reports from Viceroy Research, which accused Arbor of misleading investors about the quality of its loan book and engaging in “window-dressing” to obscure financial troubles. In a report, released earlier in August, Viceroy pointed to a 10% surge in delinquent loans to $1 billion as evidence of the company’s deteriorating financial condition.

Arbor is also battling a class-action lawsuit alleging securities fraud. The suit, filed in late July, accuses the company of painting a misleadingly rosy picture of its business performance. Investor concerns about Arbor’s financial health first emerged in Mar. 2023 when NINGI Research questioned the value of the company's real estate holdings, particularly its mobile home portfolio.

Then, in Dec. 2023, Viceroy released a report alleging widespread issues with the company's loan book.

Finally, on July 12, 2024, reports of a federal investigation into the company's lending practices broke. Each of these revelations caused the price of Arbor shares to decline sharply.

These allegations have prompted prominent shareholder rights firm Hagens Berman to commence an investigation into potential securities fraud.

“We are investigating whether Arbor Realty may have misled investors about its financial health and the quality of its loan book,” said Reed Kathrein, a partner at Hagens Berman. “Investors deserve to know the truth about their investments, and we are committed to holding companies accountable.”

If you invested in Arbor and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Arbor case and our investigation, read more»

Whistleblowers: Persons with non-public information regarding Arbor should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email ABR@hbsslaw.com.

About Hagens Berman Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at  hbsslaw.com. Follow the firm for updates and news at  @ClassActionLaw. 

Contact: Reed Kathrein, 844-916-0895