Arbor Realty Trust Sheds Investor Lawsuit Over Loan Portfolio

Arbor Realty Trust Inc. defeated proposed class allegations of overstating to investors the value of its loan book by disregarding its underwriting standards.

The investors leading the suit failed to allege Arbor or top executives thought their stated opinions on the strength of its loss reserves were inaccurate, among other issues with the pleadings, the US District Court for the Eastern District of New York said in March. Judge Pamela K. Chen gave the investors a chance to try again, but she ordered the case closed Tuesday after they didn’t file an amended complaint by the deadline.

The investors didn’t ...