SAN FRANCISCO, CA / ACCESSWIRE / September 27, 2024 / A new report from activist short seller Viceroy Research has intensified scrutiny on Arbor Realty (NYSE:ABR), a prominent player in structured finance. Viceroy's latest report, "Arbor - September 2024 CLO Update," paints a bleak picture of the company's financial health, alleging widespread distress within its loan portfolio.
Hagens Berman urges Arbor Realty Trust, Inc. 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
Viceroy's September 19 Report
Viceroy's latest report details a series of troubling indicators. Despite significant modifications to its CLO book, Arbor's loans remain deeply troubled, with debt service coverage ratios (DSCRs) plummeting to 0.48x. The report contends that federal rate cuts will provide little relief, as even a 200 basis point reduction would only marginally improve underlying investment losses, according to Viceroy.
Moreover, Viceroy claims Arbor's net interest spread is under threat due to declining cash interest income rates and the growing prevalence of interest-only loans. Viceroy further points out that the company's origination activity has also slowed to an all-time low, while it continues to pay dividends using principal repayments from its distressed loan book.
Arbor's troubles have not gone unnoticed by regulators. According to Bloomberg, Arbor is under investigation by both the DOJ and FBI, and Viceroy claims that the SEC denied its Freedom of Information Act requests on the basis that their release may interfere with enforcement proceedings.
Arbor Realty Securities Class Action
The mounting scrutiny has led to a class-action lawsuit against Arbor Realty. Investors who purchased or acquired Arbor Realty Trust securities between May 7, 2021, and July 11, 2024, are alleging that the company misled them about the health of its loan portfolio. The lawsuit seeks to represent the interests of these investors and is currently pending in the Eastern District of New York.
These serious allegations prompted prominent shareholder rights firm Hagens Berman to launch an investigation into potential securities fraud. Reed Kathrein, a partner at Hagens Berman, stated, "We are investigating whether Arbor Realty may have misrepresented the quality of its loan book."
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.
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About Hagens Berman
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Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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