Columbia Property Trust (CXP) Investment Losses
Did you invest in Wells REIT II, the now public traded REIT known as Columbia Property Trust (CXP)? If so, The White Law Group may be able to assist you in the recovery of your investment losses through FINRA Dispute Resolution.
According to Columbia Property Trust website, Columbia Property Trust, formally known as Wells REIT II, commenced a modified “Dutch Auction” offer to purchase up to $300 million in common stocks on the New Your Stock Exchange under the ticker symbol CXP. Unlike a traditional auction where the price increases as bidders compete, in a dutch action the price is set high and is lowered until it gets a bid, so long as the price is above the reserve price. The maximum price for the REIT was set at $25.00 with a reserve price of $22.00 per share. Currently, the REIT consists of 82 buildings located throughout the US with a portfolio value of more than $5 billion.
According to the New York Stock Exchange the opening bid was $22.75. While the public listing will provide investors liquidity, selling their shares at the current price will result in significant losses. Prior to the public offering, the REIT issued a 4-for-1 reverse stock split that valued the stock at $29.32 (here to read more). Unfortunately for investors, the public offering has not provided them the opportunity to get back what they invested.
Share Price Declines Amid Covid-19 Financial Turmoil, Update on June 8, 2020
According to Market Watch, shares of CXP closed at $15.60 yesterday. Share price has declined -28.42% in the last 12 months.
Some broker dealers pushed the sales of non-traded REITs on investors in light of the 7% commissions they would earn. In order to facilitate sales, many broker-dealers over looked suitability requirements. It is a broker dealers duty to make investment recommendations that are in line with a clients age, investment objectives, liquidity needs, and risk tolerance to name a few requirements. In addition, some broker-dealer may even have portrayed REITs as “safe” and failed to adequately disclose the risks associated with the investment. Broker dealers that fail to perform their fiduciary duty to clients can be responsible for investment losses.
If you invested in Columbia Property Trust (f/k/a Wells REIT II) and would like to discuss your potential to recover your investment losses, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.Tags: Columbia Property Trust class action, Columbia Property Trust current value, Columbia Property Trust distribution reinvestment, Columbia Property Trust distributions, Columbia Property Trust dividends, Columbia Property Trust fractional shares, Columbia Property Trust fraud, Columbia Property Trust initial public offering, Columbia Property Trust investigation, Columbia Property Trust IPO, Columbia Property Trust lawsuit, Columbia Property Trust litigation options, Columbia Property Trust losses, Columbia Property Trust name change, Columbia Property Trust NYSE, Columbia Property Trust opening bell, Columbia Property Trust public trade, Columbia Property Trust redemption, Columbia Property Trust redemption program, Columbia Property Trust reverse stock split, Columbia Property Trust sales, Columbia Property Trust secondary market, Columbia Property Trust share price, Columbia Property Trust tender offer, Columbia Property Trust trades, CXP losses, CXP value, REIT fraud attorney, REIT fraud lawyer, Wells REIT II IPO, Wells REIT II lawsuit, Wells REIT II losses, Wells REIT II name, Wells REIT II redemption, Wells REIT II share value Last modified: June 14, 2022