Lawsuit Filed Against Arbor Realty Trust for Securities Fraud

– A securities fraud class action lawsuit has been initiated against Arbor Realty Trust, Inc. (NYSE: ABR) by Berger Montague PC, representing investors who purchased Arbor Realty securities between May 7, 2021, and July 11, 2024. The firm is inviting affected investors to participate in the litigation, providing contact details for inquiries. The lawsuit alleges that Arbor Realty and its senior management misled investors regarding the health of the company’s loan portfolio. Concerns about the true state of Arbor Realty’s assets emerged on March 14, 2023, when NINGI Research published a report claiming the company had concealed toxic real estate properties through fraudulent holding companies for a decade. This was followed by a December 2023 report from Viceroy, which accused Arbor Realty of hiding the distressed nature of its loan book, labeling it as “the worst of the worst” in the industry. Further scrutiny intensified on July 12, 2024, when Bloomberg reported that federal prosecutors and the FBI were investigating Arbor Realty’s lending practices and the accuracy of its claims regarding loan performance. Following this revelation, Arbor Realty's stock price plummeted by 17%, as detailed in the complaint. In class action lawsuits, a lead plaintiff represents the interests of all class members. While the lead plaintiff is typically the investor with the largest financial stake, any class member can seek to serve in this role. Berger Montague, established in 1970, has a long history of representing investors in securities class action litigation across the United States.