Shareholder rights law firm Robbins LLP informs investors that a class action was filed on behalf of all persons who purchased or otherwise acquired Arbor Realty Trust, Inc. (NYSE: ABR) securities between February 27, 2026 and October 30, 2026, inclusive (the “Class Period”). Arbor Realty is a nationwide real estate investment trust and direct lender providing bridge, construction, mezzanine, and preferred equity financing for multifamily, single-family rental and other commercial real estate properties.
The complaint alleges that Arbor Realty misled investors about the containment of its subperforming loans and its ability to resolve delinquencies by year-end 2026.
Investors who purchased Arbor Realty Trust, Inc. securities during the Class Period and suffered significant losses should contact Robbins LLP before January 8, 2027 for information about the lawsuit.
Why Was Arbor Realty Sued?
The complaint alleges that entering fiscal year 2026, Arbor Realty claimed it had “ring-fenced the majority of [its] nonperforming and subperforming loans,” and had “clear visibility” to resolving “nearly all of [its] delinquencies by year end.”
Plaintiff contends, however, that during the Class Period, defendants failed to disclose that:
- the loans defendants described as “ring-fenced” were not contained;
- the Company lacked a reasonable basis to represent that the it would resolve nearly all existing delinquencies by year-end 2026;
- the Company could not reasonably reduce its REO balance at the pace predicted by year-end 2026;
- the resulting losses, reserves, and impairments threatened the Company’s earnings and its ability to sustain its dividend; and
- as a result, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Why Did Arbor Realty Stock Drop?
Plaintiff contends that on May 8, 2026, Arbor Realty announced 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. On the related earnings call, Arbor Realty’s CFO reported that the Company maintained its “expectation that we will resolve the bulk of our delinquent loans by the end of the year” which “should put our REO assets between $250 million and $300 million by the end of ’26 and greatly improve our rate of income for the future.” On this news, Arbor Realty’s stock fell $0.96, or 11.75%, to close at $7.21 on May 8, 2026.
Then, on October 30, 2026, the Company announced its financial results for the third quarter of 2026, including a GAAP net loss of $(85.4) million and that it would suspend its quarterly cash dividend. On the related call, it was reported that the Company “ended the third quarter with approximately $750 million of delinquencies and around $500 million of REO assets for total underperforming assets of roughly $1.25 billion, which is up around $200 million from the last quarter’s numbers.” On this news, the stock fell $0.88, or 29.14%, to close at $2.14 on October 30, 2026.
What Can Arbor Realty Investors Do Now?
Investors who purchased Arbor Realty Trust, Inc. securities during the Class Period may be eligible to serve as lead plaintiff. The lead plaintiff is a court-appointed investor who represents the interests of all class members throughout the litigation. Shareholders who wish to seek appointment as lead plaintiff should contact Robbins LLP before the January 8, 2027 deadline for information about the appointment process.
Shareholders do not need to serve as lead plaintiff to share in any potential recovery. Those who do not seek appointment may remain absent class members.
Does It Cost Anything to Participate?
No. Robbins LLP represents investors on a contingency fee basis, with no upfront or out-of-pocket fees or expenses.
Contact Robbins LLP
Investors seeking additional information about the Arbor Realty Trust, Inc. securities class action may contact Robbins LLP by submitting an inquiry, emailing attorney Aaron Dumas, Jr., or calling (800) 350-6003.
Why Robbins LLP?
A recognized leader in shareholder rights litigation, Robbins LLP represents investors in securities fraud and shareholder derivative litigation. We have helped restore more than $2 billion in value to shareholders and secured some of the largest recoveries in shareholder derivative litigation history.
“Companies have an obligation to provide investors with complete and accurate information so that markets can function fairly and efficiently,” said Brian J. Robbins, Founding Partner of Robbins LLP.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20261110354862/en/
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