United Development Funding IV fka UDFI

[ofirm]

The problem for all the parties here is that there are multiple
parties suing. the main financial damage was the direct loss of value
for the unitholders and I am not sure how any settlement can address
that part without full compensation. that part was originally > $250M
(if you did not sell, did you get hurt? yes, but compensation to the
trust should address that. not everyone sold).
The second and third issues are the damages to the management (UDF)
and to the actual trust / fund IV. the UDF damage will be tricky due
to what the managers did in the previous fund, but the damages to the
trust itself of IV should be fair game for compromise (in a perfect
world). the one part we can not calculate is the human factor and
the personalities involved here. the amounts spent on the legal battle
here indicate this is very personal.
Edelman is going to be an interesting weak link as they simply can
not afford to be found guilty here. connection to journalists is very
close to everything in their business and they are even now very
close to work politically (read the links in the lawsuit) and this
is going to be dug out against them if they go down here. how
damaging will their flipping be for Bass? probably as close to fetal
as you can. the emails here tie Edelman himself to this, so thats a
problem for him.