The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of investors who acquired Arbor Realty Trust, Inc. (“Arbor Realty” or the “Company”) (NYSE: ABR) securities between February 27, 2026 and October 30, 2026, inclusive (“the Class Period”). If you suffered a loss on your Arbor Realty investments, you have until January 8, 2027 to request lead plaintiff appointment.
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Investors are encouraged to fill out the contact form above or contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com to discuss your rights or interests in the securities fraud class action lawsuit at no cost.
What Is This Lawsuit About? The lawsuit alleges that Arbor Realty made false and/or misleading statements and failed to disclose that: (i) the non-performing loans Arbor Realty described as “ring-fenced” were not contained; (ii) the Company lacked a reasonable basis to represent that the Company would resolve nearly all existing delinquencies by year-end 2026; (iii) the Company could not reasonably reduce its REO balance at the pace predicted by year-end 2026; and (iv) the resulting losses, reserves, and impairments threatened the Company’s earnings and its ability to sustain its dividend.
On May 8, 2026, Arbor Realty announced its first quarter 2026 financial results, revealing net income for the quarter of $0.6 million, compared to $30.4 million for the same quarter in the prior year. Additionally, the Company had 19 non-performing loans with an unpaid principal balance (“UPB”) of $481.5 million, compared to 26 non-performing loans with a UPB of $569.1 million as of December 31, 2025. Arbor Realty CEO Ivan Kaufman stated the Company was “pushing our timetable out a little bit” to resolving non-performing and sub-performing loans and CFO Paul Elenio asserted that the Company maintained its “expectation that we will resolve the bulk of our delinquent loans by the end of the year.” On this news, the price of Arbor Realty shares declined by $0.96 per share, or approximately 11.75%, from $8.17 per share on May 7, 2026 to close at $7.21 on May 8, 2026.
Then, on October 30, 2026, Arbor Realty announced its third quarter 2026 financial results, reporting a GAAP net loss of $(85.4) million and that the Company would suspend its quarterly cash dividend, effective immediately. Additionally, the Company announced that its number of nonperforming loans had increased from 19 to 32 with a UPB of $647.6 million. Kaufman stated that Arbor Realty “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, the price of Arbor Realty shares declined by $0.88 per share, or approximately 29.14%, from $3.02 per share on October 29, 2026 to close at $2.14 on October 30, 2026.
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The Lead Plaintiff Appointment Process. The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a class action lawsuit. Courts do not consider lead plaintiff applications submitted after the relevant deadline. If you choose to take no action, you may remain an absent class member. Learn more about the lead plaintiff process and eligibility requirements here. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.
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What Should I Do? If you purchased or otherwise acquired Arbor Realty securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on Kirby McInerney LLP’s website.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20261110658302/en/
Contacts
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1171
https://www.kmllp.com
https://securitiesleadplaintiff.com/
investigations@kmllp.com
