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NASDAQ Threatens to Delist Grapevine Real Estate Investment Trust

Grapevine real estate investmentAccording to a report published by the Dallas Morning News in October 2016, the NASDAQ stock market “has notified Grapevine real estate investment trust United Development Funding IV that it will delist the company’s stock.” The securities and investment fraud law firm Fitapelli Kurta is interested in speaking to investors who have complaints regarding United Development Funding.

The report states that “United Development Funding and its companies including UDF IV have been under scrutiny from federal officials for several months following claims of fraud and insider dealing.” The firm had previously informed NASDAQ that “it would not be able to meet the latest deadlines to release its financial filings for year-end 2015 and 2016 filings because the REIT’s auditors needed more time to complete the documents.” The trust has also, according to the report, been notified by the Securities and Exchange Commission that the SEC had made a preliminary determination to recommend action against the trust stemming from its alleged violation of securities laws.

Meanwhile, Investment News recently wrote of the REIT: “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. That never happened. UDF IV, with $684 million in assets according to SEC filings, is a mortgage and development REIT. UDF branded REITs and private deals were high yield offerings, promising investors returns of 8% to 10%. UDF IV plans to to appeal the Nasdaq suspension, according to the company. Meanwhile, certain individuals associated with the REIT and its adviser have also received Wells notices.”

A Wells notice, for reference, is not a formal charge or allegation of misconduct, but a determination that the SEC may recommend a civil action or administrative proceeding.

If you have complaints regarding United Development Funding IV, you may be entitled to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. Fitapelli Kurta takes every case on a contingency basis, which means Fitapelli Kurta only gets paid if and when you collect money. By law there may be a limited window to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.