United Development Funding IV fka UDFI

[Phaedrus77]

I think the damage estimates bantered around here are nuts.

I don’t think there are any damages due to share price decline. What would the share price be if UDF filed its financials on time? The auditors said they wouldn’t audit until the SEC investigation was complete. What does that have to do with Bass? If UDF replaced its execs due to them misleading the auditors, then the audit would have likely been done long ago.

Imo, the only damages will be losses suffered from quickly liquidating loans (due to line of credits being pulled) and lost profits on business lost due to losing bank funding. Even those might be iffy because the lack of bank debt is due to no audited financials.

Keep in mind that UDF isn’t an innocent victim here. They misled their auditors and paid fines to the SEC. Bass exacerbated their problem, but he wasn’t the sole cause of it. Blaming Bass for the lack of an audit after 5 years is absurd.