Update on United Development Funding IV
Have you suffered investment losses in United Development Funding IV? If so, the securities attorneys of The White Law Group may be able to help you to recover your losses.
United Development Funding IV is a public Maryland real estate investment trust formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate.
According to a press release on Aug. 26, 2016 United Development Funding IV (NASDAQ:UDF) has not filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2015 or its Quarterly Report on Form 10-Q for the first quarter of fiscal 2016. The Trust also has not filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.
Nasdaq rules requires the timely filing of periodic reports with the SEC, and therefore, the Trust received formal notice that because the Trust failed to timely file these reports, the Nasdaq Hearings Panel will consider the additional deficiency in connection with the Trust’s request for the continued listing of its securities on Nasdaq.
As previously discussed, UDF IV attended a hearing before the Nasdaq Panel, which subsequently granted the Trust’s request for continued listing on Nasdaq, subject to the Trust evidencing compliance with Nasdaq Listing Rule 5250(c)(1) and with all other applicable requirements for continued listing on Nasdaq by September 12, 2016.
The Trust notified the Nasdaq Panel that it would need additional time to file all Filings simultaneously, and will submit a written request to the Nasdaq Panel for an extension of the September 12, 2016 filing deadline.
Trading in UDF IV’s securities on Nasdaq has been halted since February 18, 2016, and the Trust expects that the trading halt will continue at least until the Trust has become fully current in its periodic filing obligations with the SEC. No assurance can be given regarding the resumption of regular trading of the Trust’s securities on any market.
The problem with Non-traded REITs
The trouble with non traded REITs, like United Development Funding IV, is that they are complex and inherently risky products.
The high commissions associated with non-traded REITs, sometimes as high as 15%, may have provided enough incentive for some brokerage firms to overlook FINRA suitability rules when making investment recommendations to clients.
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that some investors purchase non-traded REIT investments like UDF IV.
Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives.
If you suffered losses investing in United Development Funding IV and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.