Arbor Realty Trust, Inc.
Case Overview
Status: | Status: Investigating |
Company Name: | Company Name: Arbor Realty Trust, Inc. |
Ticker: | Ticker: ABR |
Related Attorneys: | Lead Attorneys: Lauren Molinaro |
Related Practices: | Related Practices: Securities |
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.
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, 2024 to close at $12.89 on July 12, 2024.
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, 2024 to close at $12.89 on July 12, 2024.