October 18, 2016 Comments (0) Blog, Current Investigations

UDF IV Tender Offer

UDF IV
(Last Updated On: March 21, 2017)

Significant Losses with UDF IV Tender Offer

The White Law Group continues to investigate United Development Funding IV (UDF IV) and the firm has handled dozens of FINRA arbitration claims against brokerage firms involving those firms improper sale of UDF investments, including UDF III and UDF IV.

United Development Funding IV is a Maryland real estate investment trust that was formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate. The trouble with non-traded REITS, like United Development Funding IV, is that they are complex and inherently risky products.

Over the past several months, UDF IV has publicly stated it was working to file its 2015 annual report and its past three quarterly reports with the Securities and Exchange Commission in order to start trading again. UDF IV was a nontraded REIT that listed on Nasdaq in June 2014. It was sold to investors from 2009 to 2013 at $20 per share.  Finally, after a number of missed deadlines, the Nasdaq stock market has delisted UDF IV shares.

Extension of Tender Offer

Last month, MacKenzie Capital Management, extended a tender offer to investors, $1.00 per Share, expiring December 2nd. Unfortunately for many investors, this would be a significant loss on their capital investment.

Investors who purchased UDF investments in reliance upon the recommendation of a broker-dealer firm may also be eligible to pursue claims in arbitration against the firm and seek compensation for any losses they suffered as a result of those investments.

Brokers have a fiduciary duty to perform due diligence on any investment and to insure that investment recommendations are consistent with their client’s age, net worth, risk tolerance, investment experience and objectives, risk tolerance. If a broker overlooks suitability requirements, investors may have an actionable claim to recover their losses in a product in a claim through FINRA dispute resolution.

The White Law Group has handled dozens of FINRA arbitration claims against brokerage claims involving those firms improper sale of UDF investments, including UDF III and UDF IV.

Recovery of Investment Losses

For a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.