Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Arbor Realty Trust, Inc. (“Arbor Realty” or the “Company”) (NYSE: ABR) and reminds investors of the January 8, 2027 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20261110133250/en/
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the loans Defendants described as “ring-fenced” were not contained; (2) the Company lacked a reasonable basis to represent that the Company would resolve nearly all existing delinquencies by year-end 2026; (3) the Company could not reasonably reduce its REO balance at the pace predicted by year-end 2026; (4) the resulting losses, reserves, and impairments threatened the Company’s earnings and its ability to sustain its dividend; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
On May 8, 2026, before the market opened, Arbor Realty issued a press release announcing first quarter 2026 results, including net income for the quarter of $0.6 million, compared to net income of $30.4 million for the same quarter in the prior year. The Company had 19 non-performing loans with an unpaid principal balance of $481.5 million, before related loan loss reserves of $16.1 million, compared to 26 non-performing loans with a UPB of $569.1 million, before related loan loss reserves of $10.2 million as of December 31, 2025. During the related conference call held the same day, the Company’s Chief Executive Officer, Ivan Kaufman, stated the Company was “pushing our timetable out a little bit” to resolving nonperforming and subperforming loans. Further, the Company’s Chief Financial Officer, Paul Elenio, purported to reassure investors that the Company maintained its “expectation that we will resolve the bulk of our delinquent loans by the end of the year.” Elenio stated, “This should put our REO assets between $250 million and $300 million by the end of ‘26 and greatly improve our run rate of income for the future.”
On this news, Arbor Realty stock fell $0.96, or 11.75%, to close at $7.21 on May 8, 2026, thereby injuring investors.
Then, on October 30, 2026, before the market opened, Arbor Realty issued a press release announcing its financial results for the third quarter of 2026. Among other things, the Company reported a GAAP net loss of $(85.4) million and that the Company would suspend its quarterly cash dividend. The Company revealed the number of nonperforming loans had increased from 19 to 32 and they had a UPB of $647.6 million, before related loan loss reserves of $41.9 million. During the related earnings call, Defendant Kaufman disclosed the Company “ended the third quarter with approximately $750 million of delinquencies and around $500 million of REO assets for total nonperforming assets of roughly $1.25 billion, which is up around $200 million from last quarter’s numbers.”
On this news, Arbor Realty stock fell $0.88, or 29.14%, to close at $2.14 on October 30, 2026, thereby further injuring investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Arbor Realty’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Arbor Realty class action, go to www.faruqilaw.com/ABR or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Frequently Asked Questions (FAQ) for Investors Regarding the Arbor Realty Securities Class Action Lawsuit:
What is the Arbor Realty securities fraud lawsuit about?
The lawsuit alleges Arbor Realty Trust misled investors about troubled loans, its ability to resolve delinquencies and reduce REO assets, and financial risks threatening earnings and dividend sustainability.
Who may be eligible to participate in the lawsuit?
Investors who purchased or acquired Arbor Realty Trust (NYSE: ABR) securities between February 27, 2026 and October 30, 2026 may be eligible if they suffered losses.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff represents the proposed class during the litigation. Eligible investors must file a motion with the court by January 8, 2027. Investors may participate without serving as lead plaintiff.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Arbor Realty securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261110133250/en/
Media gallery
