Scott + Scott, LLP Investigating United Development Funding IV (Nasdaq: UDF) for Securities Law Violations, Encourages Investors with Losses to Contact Firm

NEW YORK, July 15, 2016 (GLOBE NEWSWIRE) -- Scott + Scott, Attorneys at Law, LLP, a global investor rights law firm, is investigating United Development Funding IV UDF for securities law violations.   UDF investors are encouraged to contact Scott + Scott at (866) 326-5057 or email gjohnson@scott-scott.com to learn more about the investigation and discuss your legal rights. A lawsuit was filed against UDF and two of its executives in the Northern District of Texas on December 21, 2015.

About the Investigation

Scott + Scott is investigating claims that UDF's management and directors misled investors by engaging in a Ponzi-like investment scheme in which newer UDF entities were used to pay investors in older UDF entities that were not capable of standing on their own without the new money. 

In particular, the firm is investigating whether UDF's management and directors misled investors and/or failed to disclose that: (i) newer UDF entities were providing significant liquidity to older UDF entities, allowing the older entities to remain solvent; (ii) UDF loans were concentrated with just two borrowers, both of whom were in financial distress; and (iii) development activities were not taking place at many UDF-funded sites.  In December 2015, UDF disclosed that the SEC had been investigating the company since April 2014.   Then, on February 18, 2016, the FBI raided UDF's corporate offices, sending the stock down over 50%.   The Nasdaq halted all trading in UDF later that same day.  

What you can do

If you purchased shares of UDF stock, you may have legal claims against the Company.  If you want to discuss the case, or have questions about your legal rights, please contact Geoffrey M. Johnson, Esq. or Joseph Halloran, Esq. by telephone at (866) 326-5057 or by email at gjohnson@scott-scott.com or jhalloran@scott-scott.com.   

About Scott + Scott, Attorneys at Law, LLP

Scott + Scott has significant experience prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States.  The firm has offices in New York, London, Connecticut, California and Ohio. Please visit www.scott-scott.com for more information about the firm.