Analyst Predicts Arbor Realty (ABR) Dividend Cut is Imminent as Legal and Financial Woes Mount- Hagens Berman
SAN FRANCISCO, Aug. 26, 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 analyst Bashar Issa, who on August 17 predicted the multifamily lender will be unable to cover its dividend by year-end.
Issa, in a report published on Seeking Alpha, 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.
The new concerns follow closely on the heels of a series of blistering reports from activist short seller Viceroy Research, which accused Arbor of misleading investors about the quality of its loan book and engaging in “window-dressing” to obscure financial troubles. The most recent report, released earlier in August, 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 Research 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
