GRAPEVINE, Texas, Jan. 22, 2020 (GLOBE NEWSWIRE) — United Development Funding (“UDF,” as described below) announced today the filing of its Response to a Petition for Review in the Supreme Court of Texas (the “Supreme Court”) in the matter of J. Kyle Bass, et. al. versus United Development Funding, L.P., et. al.
On November 28, 2017, UDF filed a lawsuit in the Dallas County Court (the “Court”) against defendants J. Kyle Bass (“Bass”) and Hayman Capital (“Hayman,” as described below, and together with Bass, “Bass/Hayman”) asserting Hayman made false statements that disparaged UDF’s business and tortuously interfered with its current and prospective contracts and business relationships, and that those statements were made with malice and caused extensive damage to UDF’s business.
On June 12, 2018, the Court, after allowing limited discovery, ruled that the UDF plaintiffs had set forth a prima facie case of intentional business disparagement and tortious interference by Bass/Hayman, denying Bass/Hayman’s motion to dismiss the lawsuit under the Texas Citizen’s Participation Act (TCPA). On June 29, 2018 Bass/Hayman filed a notice of accelerated appeal with the Texas Judicial Branch Fifth Court of Appeals (the “Appeals Court”). UDF filed its Appellate brief on November 15, 2018 opposing the Bass/Hayman’s appeal and presented its oral argument to the Appeals Court on May 2, 2019.
On August 19, the Appeals Court affirmed the decision by the Court to deny Hayman Capital’s bid to dismiss UDF’s lawsuit under the TCPA. On November 6, 2019 Hayman filed a Petition for Review with the Supreme Court, where the matter is now pending. No assurances can be given that UDF will receive any damages as a result of the lawsuit, nor can any assurances be given regarding a timeframe for a resolution of the lawsuit.
The UDF plaintiffs are represented by Ellen A. Cirangle, Jonathan E. Sommer and Kyle A. Withers with Lubin Olson & Niewiadomski LLP, who have extensive experience successfully litigating market manipulation claims against hedge funds; Judge Scott A. Brister of Hunton Andrews Kurth LLP, who has previously provided 20 years of judicial service at all levels of the Texas Court system including the Texas Supreme Court; and Rodney Smolla, Dean of the Delaware Law School of Widener University and a nationally-recognized expert in First Amendment law.
Public documents filed with the court, including discovery and UDF’s filings, can be found at www.udfonline.com/litigation. UDF’s response opposing Hayman’s Petition for Review can be found at the Supreme Court of Texas website (www.search.txcourts.gov), using the Case No. 19-0874.
“UDF” refers to plaintiffs United Development Funding, L.P., United Development Funding II, L.P., United Development Funding III, L.P., United Development Funding IV, United Development Funding Income Fund V, United Mortgage Trust, United Development Funding Land Opportunity Fund, L.P., and United Development Funding Land Opportunity Fund Investors, L.L.C.
“Hayman” refers to defendants Hayman Capital Management, L.P., Hayman Offshore Management, Inc., Hayman Capital Master Fund, L.P., Hayman Capital Partners, L.P., Hayman Capital Offshore Partners, LP and Hayman Investments, LLC.
About United Development Funding IV
United Development Funding IV is a public Maryland real estate investment trust. UDF IV was formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate. Additional information about UDF IV can be found on its website at www.udfiv.com. UDF IV may disseminate important information regarding its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may relate to business prospects, outcome of litigation and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that we expect, believe or anticipate will exist or may occur in the future, are forward-looking statements. These forward-looking statements are based on management’s current intents, beliefs, expectations and assumptions and on information currently available to management that are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in these forward-looking statements. Words such as “may,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “could,” “should” and variations of these words and similar expressions are intended to identify forward-looking statements. Investors should read the cautionary statements set forth in our periodic filings with the U.S. Securities and Exchange Commission.
