Court Rules in Favor of United Development Funding IV; Grants Motion to Dismiss Lawsuit Brought by NexPoint Advisors, L.P.
April 29, 2021 | United Development Funding IV
GRAPEVINE, Texas, April 29, 2021 (GLOBE NEWSWIRE) — United Development Funding IV (“UDF IV” or the “Trust”) announced today that District Judge David L. Evans of the 48th Judicial District Court (the “Court”) ruled in favor of the Trust in the matter of NexPoint Advisors, L.P. (“NexPoint”) vs. United Development Funding IV, Et al.
On July 8, 2020 NexPoint sent a letter that was publicly filed with the Securities and Exchange Commission to UDF IV’s Board of Trustees seeking to take over management of the Trust. The Trust responded in a measured way to protect its investors by seeking to determine the true intentions of NexPoint and its affiliates, including James Dondero, NexPoint’s portfolio manager (collectively “NexPoint/Dondero”) and requested NexPoint/Dondero identify any affiliation it may have with known bad actors who seek to harm UDF IV and its shareholders, including J. Kyle Bass, Hayman Capital and its affiliates (collectively “Bass/Hayman”) and its possible involvement with Bass/Hayman and the illegal “short and distort” fraud scheme perpetrated against UDF.
UDF IV requested this information on July 22, 2020, and again on August 31, 2020, and September 8, 2020, but to date NexPoint/Dondero has not provided the requested information. Instead, on October 9, 2020, NexPoint filed a defamation lawsuit against the Trust intending both to silence UDF IV from expressing its views further and intimidate UDF IV so that it stops asking questions that NexPoint/Dondero do not want to answer.
