Glancy Prongay & Murray LLP Files Amended Complaint Expanding the Class Period in the Securities Class Action Lawsuit Pending Against United Development Funding IV

Glancy Prongay & Murray LLP (“GPM”) announces that it has filed an amended complaint in the class action lawsuit currently pending in the United States District Court for the Northern District of Texas on behalf of persons or entities (“the Class”) who purchased or otherwise acquired United Development Funding IV (“UDF IV” or the “Company”) (NASDAQ: UDF) securities between June 4, 2014 and February 4, 2016, inclusive (the “Class Period). If you are a member of the Class described above, you may move the Court no later than February 19, 2016 to serve as lead plaintiff.

The lawsuit alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that subsequent UDF companies provide significant liquidity to earlier vintage UDF companies, allowing them to pay earlier investors; (2) that if the funding mechanism funneling retail capital to the latest UDF company were halted, the earlier UDF companies would not be capable of standing alone, and the entire structure would likely crumble with investors left holding the bag; (3) that UDF IV provided liquidity to UDF I, UMT and UDF III, among other affiliates, further exacerbating the problem and perpetuating the scheme; (4) that, as such, Defendants were operating a Ponzi-like real estate investing scheme; (5) that the Company was being investigated by the SEC; and (6) that, as a result of the foregoing, Defendants’ statements about UDF IV’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On December 10, 2015, a report was published alleging that the Company was operating a “Ponzi-like real estate scheme,” whereby successive UDF entities would raise capital to bail out prior vintages. On this news, the Company’s shares fell $6.05, or more than 35%, to close at $11.15 on December 10, 2015.

On the same day, after the market closed, the Company issued a press release disclosing that UDF III and UDF IV “have been cooperating since April 2014 with a nonpublic fact-finding investigation being conducted by the Staff of the Securities and Exchange Commission.” On this news, the Company’ shares plummeted another $2.60, or 23.3%, to close at $8.55 per share on December 11, 2015, thereby injuring investors.

On February 5, 2016, Hayman Capital Management L.P. published a report online that reiterated earlier allegations that UDF IV is operating a Ponzi scheme, and accused the Company of operating “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.”

On this news, shares of UDF IV fell $3.12 per share, or more than 30%, to close at $7.08 on February 5, 2016, on unusually heavy trading volume.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts:

Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com

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