The law firm of Kirby McInerney LLP is investigating potential claims against Arbor Realty Trust, Inc. (“Arbor” or the “Company”) (NYSE: ABR). The investigation concerns whether Arbor and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
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On July 12, 2024, Bloomberg reported that federal “investigators are inquiring about lending practices and [Arbor Realty]’s claims about the performance of their loan book.” On the same day, Reuters published an article entitled “U.S. DOJ probing Arbor Realty over loan practices, Bloomberg report.” The Reuters article stated that “Arbor Realty Trust is being probed by federal prosecutors and the Federal Bureau of Investigation in New York months after short sellers attacked the lender’s practices and disclosures.” It further stated that in “2023, short sellers, including Viceroy Research and NINGI Research, published reports alleging that Arbor Realty Trust, which invests in a diversified portfolio of structured finance assets, had a distressed loan book. Viceroy Research claimed that Arbor’s underlying collateral for the loans is vastly overstated, adding that the loans do not qualify for refinancing anywhere and are nearing maturity. NINGI Research accused the company of concealing a ‘toxic’ real estate portfolio of mobile homes with ‘a complex web’ of real and fake holding companies for over a decade.” On this news, the price of Arbor shares declined by $2.64, or approximately 17%, from $15.53 on July 11, 20 24 to close at $12.89 on July 12, 2024.
If you purchased or otherwise acquired Arbor securities, have information, or would like to learn more about this investigation, contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars.
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