KESSLER TOPAZ MELTZER & CHECK, LLP ANNOUNCES UNITED DEVELOPMENT FUNDING IV SHAREHOLDER INVESTIGATION - UDF
Kessler Topaz Meltzer & Check, LLP has initiated an investigation on behalf of shareholders of United Development Funding IV securities (NASDAQ: UDF) (“UDF IV” or “the Company”).
On December 10, 2015, a report posted on the Harvest website asserted companies affiliated United Development Funding (including UDF IV), "exhibits characteristics emblematic of a Ponzi scheme," as newer UDF entities were used to raise funds to bail out older UDF entities, which "continually needed a source of liquidity." The report further stated, among other things, that: (i) "[v]isits to actual development sites, which serve as collateral to UDF development loans, show that, in numerous instances, there is no development and the collateral is still non-income producing, raw land 2, 3, 5 (as much as 10) years after loans were issued"; (ii) a lawsuit was filed in Texas state court in October 2015, naming UDF IV as a co-defendant in a case involving allegations of fraud, breach of contract, tortious interference and fraudulent transfer; and (iii) in November 2015, several UDF entities disclosed that their independent registered public accounting firm, Whitley Penn LLP, declined to stand for reappointment as auditor.
Upon news of the report, UDF IV stock declined $6.05 to close at $11.15 per share on December 10, 2015 or more than 35%,. On December 11, 2015, the stock declined more than $3.00 per share or 30% on intraday trading.
UDF IV shareholders who wish to discuss this investigation and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP, at 888-299–7706, at email@example.com or by submitting the form to the right,