Shares of Arbor Realty Trust, Inc. (“Arbor Reality”) dropped nearly 17% in intraday trading on Friday, July 12, 2024, following a Bloomberg article, which reported that federal prosecutors and the Federal Bureau of Investigation are investigating Arbor Realty’s “lending practices and the company’s claims about the performance of their loan book.” This follows two short seller reports, which raised concerns about Arbor Realty’s practices and disclosures, and alleged that Arbor Realty had a distressed loan book.

Gibbs Law Group is investigating a potential Arbor Realty Trust, Inc. Class Action Lawsuit on behalf of shareholders who lost money in Arbor Realty Trust, Inc. (NYSE: ABR).

What Should Arbor Realty Trust, Inc. Investors Do?

Learn more about the Arbor Realty Class Action Lawsuit Investigation here or call us toll-free at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Arbor Realty Trust, Inc. has violated federal securities laws by providing false or misleading statements to investors.

What is the Arbor Realty Securities Lawsuit Investigation About?

On July 12, 2024, Bloomberg published an article entitled “Arbor Realty Probed by DOJ Over Lending Practices, Loan Book.” The article claims that federal prosecutors and the Federal Bureau of Investigation are investigating Arbor Realty’s “lending practices and the company’s claims about the performance of their loan book.”

Prior to the Bloomberg article, two short seller reports previously raised concerns about Arbor Realty’s practices and disclosures, and alleged that Arbor Realty had a distressed loan book.

One report, published by Ningi Research in March 2023, claimed that Arbor Realty “has been hiding a toxic real estate portfolio of mobile homes with a complex web of real and fake holding companies for more than a decade.” Another report, published by Viceroy Research in November 2023, alleged that Arbor Realty’s “entire loan book is distressed and underlying collateral is vastly overstated.”

According to Bloomberg, federal investigators are now probing the New York-based company following these reports, citing sources close to the matter.

Following this news, shares of Arbor Realty dropped nearly 17% in intraday trading on Friday, July 12, 2024, causing significant harm to investors.

About Gibbs Law Group

Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”

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