United Development Funding IV fka UDFI

[Jh5142]

That settlement seems like a ‘slap on the wrist’ to me. As I understand it, this settles all claims that UDF IV would have against the team managing the affairs.

The plaintiffs accepted a cash payment of $1.5 million and some corporate governance improvements. And it looks like that $1.5 million is being paid from an insurance policy rather than from the defendants.

Hopefully, this means that management has a very strong defense - and that seems possible only if there is substantial value left at UDF IV. If there isn’t clear wrong-doing, or if the value at UDF IV is low, why settle for such a small amount?

I think there is still the global class action to deal with. That case is “Hay’ vs UDFIV, et al and we know that there has been an MOU agreed upon.

This all hints at the idea that UDF IV has real value and will continue as a going concern. I’m surprised the stock is trading so low still.