The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments in United Development Funding IV, which recently announced that it makes no recommendation concerning the unsolicited tender offer, by SCM Special Fund 3, LP and MacKenzie Capital Management, LP, of $1/share of United Development Funding common stock.
According to United Development Funding IV’s release, published on the Securities and Exchange Commission website: “You should be aware that the Trust is not in any way affiliated with the Offerors and our Board of Trustees (the ‘Board’) makes no recommendation, expresses no opinion and remains neutral regarding whether you should accept or decline the Tender Offer. As stated in the Offerors’ letter, the Offerors are making this offer ‘with the intention of making a profit from the ownership of the Shares.’ Further, the Offerors state that they ‘are motivated to establish the lowest price which might be acceptable to [you] consistent with the [Offerors’] objectives.’”
United Development Funding IV is a mortgage real estate investment trust (REIT) that conducts business lending funds for the development of properties. In February 2016, per Investment News, the Federal Bureau of Investigation (FBI) raided United Development Funding IV’s offices, Its stock price fell 81% in recent months, after a hedge fund alleged United Development Funding IV operates “like a Ponzi scheme.” Investment News reported that United Development Funding IV’s share price fell 55% “after it was reported that the FBI agents were carrying boxes out of the company’s headquarters.” The stock price descended to $3.20/share; in December, it stood at $17.20/share. The aforementioned tender offering is for $1.00/share.
If you have lost money investing with United Development Funding IV, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be able to recoup your losses. All cases are taken on contingency, which means Fitapelli Kurta only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.