Board Continues Deflection Tactics to Avoid
Accountability
Current Trustees Refuse to Answer Serious Questions,
Highlighting Need for New Leadership
DALLAS, Nov. 7, 2024
/PRNewswire/ -- NexPoint Real Estate Opportunities, LLC (together
with its affiliates "NexPoint") provided an update on United
Development Funding IV ("UDF IV" or the "Company") and the current
Board of Trustees election.
In a recent letter, NexPoint alerted fellow shareholders of the
Company's persistent use of deflection tactics to evade
accountability and shift focus away from its own failings. UDF IV
has employed these tactics before. The Board and management blamed
external parties for criminal misconduct, disclosure violations,
and governance failures that occurred for years at UDF IV under the
current Trustees. Those accusations against external parties have
since been disproven, revealing a pattern of deception used by the
Board and UDF management to obscure their own culpability.
- A copy of the shareholder letter can be found here.
In the face of this proxy fight, rather than presenting
shareholders with a clear agenda for the Company moving forward,
the Board has employed a classic fearmongering campaign: imploring
shareholders to fear and improbable threats, while ignoring the
Company's well-documented pattern of corporate misbehavior that
spans almost a decade and is likely to continue without meaningful
change.
The letter urges shareholders to ignore these deception tactics
and focus on key questions NexPoint has raised that the current
Trustees have failed to answer, including:
- Why did the Board take no meaningful action after the
criminal convictions of former UDF executives?
- Why is the Board continuing to enrich those same
executives—now serving prison sentences for defrauding UDF IV
shareholders—through the Company's lucrative advisory
agreement?
- Why haven't the current Trustees provided plans to maximize
value and liquidity at any point over the last several years while
on the Board—not to mention as part of their bid for reelection
today?
These and other unanswered critical questions make clear that
the current Trustees and UDF management have no plan beyond
clinging to the status quo.
The current Trustees have gone years without showing any
accountability; shareholders have no reason to believe they will
make any significant changes now. Recent financials reveal
troubling trends that provide a bleak outlook for UDF IV unless
changes occur. This election is the only opportunity
for years to come to effectuate wholesale change by voting for
NexPoint's nominees, who will represent shareholders' interests and
enact critical change to recover value and liquidity on behalf of
all shareholders.
VOTING INFORMATION
Shareholders can vote TODAY to replace the current Trustees,
voting FOR NexPoint's nominees using the GREEN proxy card. Follow
the voting instructions on your green proxy materials to submit
your vote.
If you have already submitted a white proxy card, it's not too
late to change your vote. Only the last dated proxy card submitted
will be counted.
For detailed voting instructions, visit:
udfaccountability.com/voting-information
For voting assistance contact Okapi Partners at:
info@okapipartners.com or (877) 869-0171
IMPORTANT INFORMATION
NexPoint Real Estate Opportunities, LLC ("NexPoint") has
delivered a proxy statement with respect to its solicitation of
proxies for nominees to be elected to the United Development
Funding IV ("UDF IV") Board of Trustees at the Annual Meeting of
Shareholders of UDF IV. The date for the Annual Meeting has not yet
been set at this time.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE NEXPOINT
PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO)
IN ITS ENTIRETY AS IT CONTAINS IMPORTANT INFORMATION ABOUT THE
PROXY SOLICITATION.
Copies of the documents are available free of charge from
NexPoint by accessing the website www.udfaccountability.com.
NexPoint, its affiliates, their directors and executive officers
and other members of management and employees may be participants
(collectively "Participants") in the solicitation of proxies by
NexPoint. Information about NexPoint's nominees to the UDF IV Board
of Trustees and information regarding the direct or indirect
interests in UDF IV, by security holdings or otherwise, of
NexPoint, the other Participants and NexPoint's nominees will be
available in the proxy statement. NexPoint's disclosure of any
security holdings will be based on information made available to
NexPoint by such Participants and nominees. UDF IV is no longer
subject to the reporting requirements of the Securities Exchange
Act of 1934, as amended. Consequently, NexPoint's knowledge of
significant security holders of UDF IV and as to UDF IV itself is
limited.
CONTACT INFORMATION
Voting Assistance:
info@okapipartners.com
(212) 297-0720
General Inquiries:
udfinvestors@nexpoint.com
Media Relations:
nexpointteam@reevemark.com
Investor Relations:
ir@nexpoint.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/udf-iv-board-silent-on-critical-shareholder-concerns-raised-by-nexpoint-302299383.html
SOURCE NexPoint Advisors, L.P.