A securities class action has been filed against Arbor Realty Trust, Inc. (ABR) on behalf of persons and entities that purchased or otherwise acquired Arbor Realty Trust, Inc. (ABR) securities between February 27, 2026 through October 30, 2026. This case has been filed in the USDC – EDNY.
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.