United Development Funding IV fka UDFI

[56Chevy]

Current Report Filing (8-k)

Item 7.01 Regulation FD Disclosure.
 
On November 28, 2017, United Development Funding, L.P., United Development Funding II, L.P., United Development Funding III, L.P., United Development Funding IV, United Development Funding Income Fund V, United Mortgage Trust, United Development Funding Land Opportunity Fund, L.P., and United Development Funding Land Opportunity Fund Investors, L.L.C. (collectively, the “Plaintiffs” or “UDF Funds”) filed a lawsuit in the County Court of Dallas County, Texas against J. Kyle Bass (“Bass”) and Hayman Capital Management, L.P., Hayman Offshore Management, Inc., Hayman Capital Master Fund, L.P., Hayman Capital Partners, L.P., Hayman Capital Offshore Partners, L.P., and Hayman Investments, LLC, all of which are hedge fund entities believed to be under the control of Bass (collectively with Bass, the “Defendants” or the “Bass Entities”). A copy of the Plaintiffs’ complaint can be found at the County Court of Dallas County, Texas website (https://courtsportal.dallascounty.org/DALLASPROD ), using the Case No. CC-17-06253-B.
 
The lawsuit alleges claims against Defendants for business disparagement, interference with contract, interference with prospective economic advantage and civil conspiracy. In general, the UDF Funds allege that the Bass Entities made false and disparaging statements – first anonymously on a third-party website and later in their own name on a proprietary website – about the business of the UDF Funds in order to destroy the UDF Funds’ business. The UDF Funds further allege that the Bass Entities profited from the resulting damage to the business of the UDF Funds because the Bass Entities had, prior to the publication of the false statements, established a large short position in the UDF Funds.
 
The UDF Funds allege that the false and disparaging statements include statements designed to convey that the UDF Funds were a Ponzi scheme, that

the UDF Funds had no genuine ability to carry on their business, that the UDF Funds’ insolvency would render their shares virtually worthless, that the UDF Funds’ real estate developments were not genuine developments, that the UDF Funds’ largest borrower was not an arm’s-length borrower and was also insolvent, and that investor proceeds were being misappropriated. The UDF Funds allege that all of these assertions were false and that, in truth, the UDF Funds were a family of successful real estate investment funds engaged in genuine real estate development with arm’s-length borrowers with a long track record of real estate development.
 
The lawsuit alleges that the UDF Funds suffered damage because the false statements of the Defendants caused, among other things, a sudden and severe loss of credit and reduction in capital that the UDF Funds relied on to carry on their business of lending to real estate developers for use in land acquisition and single-family home developments. The Plaintiffs seek damages for the loss of income that they suffered as a consequence, as well as damages for various other injuries and other costs caused by the false statements. However, no assurances can be given that the Plaintiffs will receive any damages as a result of the lawsuit, nor can any assurances be given regarding a timeframe for a resolution of the lawsuit.

Source:
https://ih.advfn.com/p.php?pid=nmona&article=76194070

Marker:
United Development F (UDFI)
$3.50 0.0 (0.00%)
Volume: 4,405

*I was hoping todays news release was updated news regarding the financials. This was a curve ball. UDFI is going after Kyle Bass & Co.
I would have to agree what Bass did seemed more than bold it appeared to be down right wrong. We'll see if the courts agree.