{"id":4812,"date":"2017-11-30T12:31:35","date_gmt":"2017-11-30T18:31:35","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4719"},"modified":"2022-03-22T15:07:37","modified_gmt":"2022-03-22T20:07:37","slug":"texas-reit-udf-files-lawsuit-accusing-hedge-fund-manager-damaging-false-statements","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/texas-reit-udf-files-lawsuit-accusing-hedge-fund-manager-damaging-false-statements\/","title":{"rendered":"Texas REIT UDF Files Lawsuit Accusing Hedge Fund Manager of Damaging False Statements"},"content":{"rendered":"<p>\t\t\t\tThe United Development Funding, a beleaguered Texas real estate investment trust accused of running a $1B Ponzi-like scam, is suing a hedge fund manager for the allegedly \u201cfalse and disparaging\u201d statements that led to the fraud allegations.<\/p>\n<p>The REIT came under fire two years ago after an investor website issued a report accusing UDF IV of being run like a Ponzi scam. For the last two years, our <a href=\"https:\/\/www.investorlawyers.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Texas securities fraud lawyers<\/a> at Shepherd Smith Edwards and Kantas LTD, LLP has been fielding calls from investors who suspect they may have suffered financial losses from investing in UDF Funds.<\/p>\n<p>According to UDF\u2019s complaint, filed in Dallas County, hedge fund manager Kyle Bass and his Hayman Capital Management are the ones that anonymously published the Ponzi allegations online and then later on a proprietary site. They allegedly did this to damage the UDF Funds.<\/p>\n<p>In its filing with the US Securities and Exchange Commission about the complaint, the REIT accused the defendants of engaging in \u201cfalse and disparaging statements,\u201d including that: the UDF Funds were part of a Ponzi fraud, they were unable to run their own business, had insolvency problems that made their shares \u201cworthless,&#8221; their real estate developments that were \u201cnot genuine,\u201d and they \u201cmisappropriated\u201d investors\u2019 funds. The filing countered that the UDF Funds were \u201csuccessful\u201d and had actual real estate developments. The REIT claims that because Bass had set up a \u201clarge short position\u201d in the Texas REIT before publishing the false allegations, he and his company \u201cprofited\u201d from the damages wreaked by their claims.<\/p>\n<p>Bass had a short position in the REIT. Once he disclosed this news, United Development Funding shares plunged in price. In response to this lawsuit, the hedge fund manager claims it is meritless.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/texas-reit-udf-files-lawsuit-accusing-hedge-fund-manager-damaging-false-statements\/#more-4812\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United Development Funding, a beleaguered Texas real estate investment trust accused of running a $1B Ponzi-like scam, is suing a hedge fund manager for the allegedly \u201cfalse and disparaging\u201d statements that led to the fraud allegations. The REIT came under fire two years ago after an investor website issued a report accusing UDF IV [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3748,3792,3759,3750],"tags":[2926],"class_list":["post-4812","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","category-ponzi-scams","category-reits","category-texas-securities-fraud","tag-united-development-funding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Texas REIT UDF Files Lawsuit Accusing Hedge Fund Manager of Damaging False Statements &#8212; Investor Lawyers Blog &#8212; November 30, 2017<\/title>\n<meta name=\"description\" content=\"A Texas REIT is suing a hedge fund manager for the allegedly \u201cfalse and disparaging\u201d statements that led to the fraud allegations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/texas-reit-udf-files-lawsuit-accusing-hedge-fund-manager-damaging-false-statements\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Texas REIT UDF Files Lawsuit Accusing Hedge Fund Manager of Damaging False Statements &#8212; 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