Arbor Realty Faces Lawsuit Over Alleged Fraud, 'Toxic' Portfolio

Arbor Realty Trust, a multifamily lender, is facing significant legal and financial challenges. The company is under federal investigation for alleged fraud and is now confronting a lawsuit from investors who accuse it of concealing a 'toxic' portfolio. The lawsuit claims that Arbor's financial statements cannot be trusted. Recent reports, including Arbor's Q2 2024 10-Q filing, have intensified scrutiny, with some analysts criticizing the discrepancies between the company's public statements, press release, earnings call, and its financial reality. Viceroy Research has announced forthcoming updates that are expected to highlight further issues within Arbor's financial disclosures.