BOCA RATON, Fla., Feb. 25, 2016 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, comments on the recent SEC Form 8-K filing reported by United Development Funding IV (NASDAQ:UDF) to shareholders. The United Development Funding IV SEC filing, dated February 22nd, reported “law enforcement authorities executed a search warrant at the corporate office of United Development Funding IV.” According to the SEC filing, following law enforcement actions United Development Funding IV received a notice from The NASDAQ Global Select Market (“NASDAQ”) of a trading halt in the company’s stock which is still in effect. United Development Funding IV share prices declined over 80% over the last 12 months, prior to the trading halt. According to securities attorney, Steven D. Toskes, Esq, “Investors who invested in United Development Funding IV as a non-traded REIT have significantly different case facts than investors who invested after the Initial Public Offering (“IPO”).”
Investor losses in United Development Funding IV may be attributed to Financial Industry Regulatory Authority (FINRA) sales practice violations. Mr. Toskes explains, “Brokerage firms who sold and marketed United Development Funding IV to investors are obligated to give, and investors are entitled to rely upon, brokerage firms for adequate due diligence when recommending investments.” FINRA sales practice violations may have led to their investment losses. Brokerage firm violations of FINRA sales practice rules related to investments in United Development Funding IV may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors.
About Klayman & Toskes, P.A.
K&T is a leading securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors such as non-profit organizations, public and multi-employer pension funds in large and complex securities matters. K&T has office locations in California, Florida, New York and Puerto Rico. Investors with questions related to sales practices of brokerage firms and its financial advisors’ recommendations concerning United Development Funding IV, may contact Steven D. Toskes, Esq. at 888-997-9956.
Source:Klayman & Toskes P.A.