NexPoint to Nominate Four Highly Qualified and
Independent Trustees
DALLAS, April 22,
2024 /PRNewswire/ -- NexPoint Real Estate
Opportunities, LLC ("NexPoint") today announced its intent to
nominate a slate of four independent trustees for election to the
Board of Trustees of United Development Funding IV ("UDF IV" or the
"Company"), a real estate investment trust in which NexPoint is a
significant shareholder. This follows an order from the Circuit
Court for Baltimore City (the "Court") requiring UDF IV to hold an
Annual Meeting on or before December 31,
2024, during which four of the five trustees must stand for
election.

"NexPoint is pleased that the Court ruled
that shareholders have a right to elect all independent trustees of
UDF IV in 2024. This Court order follows UDF IV's persistent
misconduct and governance abuses – which have continued even after
the Company's executives were convicted and incarcerated for
securities fraud – including failing to hold an Annual
Meeting for eight years. In fact, three independent directors have
not stood for election since June
2015 and one independent director has never stood for
election. We look forward to officially nominating four
trustee candidates, with the goal of realigning the Board with
shareholder interests, increasing transparency and seeking
opportunities for enhancement of shareholder value and, ultimately,
liquidity."
NexPoint believes the Court's ruling is a decisive reproach of
UDF IV's governance practices and reflects the urgent need for a
completely restructured Board of Trustees that truly serves
shareholders. The Court noted that the Company's governance
structure, under which trustees are held in staggered classes and
subject to rotating elections "combined with UDF IV not holding
annual meetings for several years, resulted in no opportunities for
[NexPoint] or any other stockholders to nominate challengers to the
incumbent trustees."
NexPoint's efforts to rectify the harm caused to UDF IV
shareholders continue to make an impact. Earlier this year, amid
litigation initiated by NexPoint, UDF IV removed indefensible bylaw
restrictions limiting the shareholders' ability to nominate Board
candidates. Additionally, in February, NexPoint highlighted further
shareholder mistreatment associated with the distribution of Fair
Fund settlement payments to certain UDF IV shareholders.
Unbeknownst to the shareholders, UDF IV used shareholder
investments to fund $6,809,282 of the
Fair Fund, contrary to the final judgment against former UDF IV
officers Hollis Greenlaw,
Benjamin Wissink, and Cara Obert and current Chairman of UDF IV's
advisor, Todd Etter, which required
them individually to disgorge those funds as ill-gotten gains for
the benefit of shareholders.
UDF IV shareholders seeking further details on NexPoint's reform
efforts can contact us at UDFinvestors@NexPoint.com.
About NexPoint
NexPoint Real Estate Opportunities, LLC is a wholly owned
subsidiary of NexPoint Diversified Real Estate Trust, Inc. (NYSE:
NXDT), an affiliate of NexPoint Advisors, L.P. NexPoint
Advisors, L.P. is an SEC-registered adviser on the NexPoint
alternative investment platform. It serves as the adviser to a
suite of funds and investment vehicles, including a closed-end
fund, interval fund, business development company, and various real
estate vehicles. For more information visit www.nexpoint.com
Media Contacts
Lucy Bannon
Chief Communications Officer
lbannon@nexpoint.com
Paul Caminiti/Jacqueline Zuhse
Reevemark
NexPointTeam@reevemark.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/following-years-of-governance-failures-court-orders-udf-iv-to-hold-trustees-election-in-2024-302123008.html
SOURCE NexPoint