Sun Sep 15 10:33:00 UTC 2024: ## Arbor Realty Trust Sued for Allegedly Misrepresenting Loan Portfolio Health

**NEW YORK, Sept. 15, 2024** – Leading securities law firm Bleichmar Fonti & Auld LLP announced today that a lawsuit has been filed against Arbor Realty Trust, Inc. (NYSE: ABR) and its executives for allegedly misleading investors about the health of the company’s loan portfolio.

The lawsuit, filed in the U.S. District Court for the Eastern District of New York, claims that Arbor used deceptive tactics, including fake holding companies, to mask the true condition of its loan book, which it alleges was in distress and overstated.

The lawsuit stems from a series of events, including:

* **March 2023:** NINGI Research published a report alleging that Arbor had been concealing a “toxic” real estate portfolio of mobile homes for over a decade. The news led to a 7% drop in ABR stock price.
* **December 2023:** Viceroy Research released a study finding that Arbor’s entire loan book was distressed and its collateral overstated. The news caused a 1% decline in ABR stock price.
* **July 2024:** Bloomberg reported that federal prosecutors and the FBI were investigating Arbor’s lending practices and its claims about the performance of its loan book. This news resulted in a 17% drop in ABR stock price.

The lawsuit, brought on behalf of ABR investors, seeks compensation for alleged damages caused by the company’s alleged misrepresentations. Investors who purchased ABR securities have until September 30, 2024 to request the court to appoint them as lead plaintiff in the case.

Bleichmar Fonti & Auld LLP, known for its successful representation in securities class actions and shareholder litigation, is representing the plaintiffs on a contingency fee basis. Investors who suffered losses are encouraged to contact the firm for information about their rights.

Read More