KBS REIT Investment Losses
According to reports, a class action against KBS REIT has been withdrawn.
In May, investors lead by plaintiff George Stewart sued KBS, alleging that KBS made misrepresentations about the REIT, including its investment objectives, the dividend payment policy and the value of the REIT’s investments.
Apparently, on Friday, the plaintiffs filed a notice of voluntary dismissal in U.S. District Court in Fort Meyers, Fla.
Investors in KBS REIT I were notified in March that the REIT’s value would be cut to $5.16 per share, from $7.32, a drop of 29%. The REIT’s offering price was $10 per share. It also said it was stopping distributions to investors.
KBS REIT I is substantial, having raised $1.7 billion in equity in its initial offering, according to an investor presentation the company filed with the Securities and Exchange Commission in March. It has $3.4 billion in property assets, and holds loans and other debt of $2.3 billion.
While the pending class action lawsuit against KBS has been withdrawn, investors in KBS can still file FINRA arbitration claims to attempt to recover their losses.
The White Law Group continues to investigate the liability that brokerage firms have for recommending KBS REIT to their customers. Brokerage firms have a fiduciary duty to their clients to perform adequate due diligence on investments before recommending them to their clients. Based on what is now known about KBS REIT, it appears that the firms that sold the product will be unable to demonstrate that they performed adequate due diligence.
Rather, it appears that the firms that sold KBS REIT were more interested in the high commissions selling the investment created (and not whether the investment was appropriate for investors).
Recovery of Investment Losses
If you suffered losses in KBS REIT and would like to discuss your litigation options, please call The White Law Group at 888/637-5510 for a free consultation. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit https://whitesecuritieslaw.com.Tags: Chicago broker fraud attorney, Chicago FINRA attorney, Chicago investment fraud attorney, Chicago securities attorney, Chicago securities lawyer, KBS REIT class action, KBS REIT class action dismissal, KBS REIT class action withdrawal, KBS REIT current value, KBS REIT derivative suit, KBS REIT devaluation, KBS REIT dividend cut, KBS REIT fraud, KBS REIT investigation, KBS REIT latest news, KBS REIT lawsuit, KBS REIT losses, KBS REIT price drop, KBS REIT update, REIT fraud attorney, REIT fraud lawyer, Vero Beach investment fraud attorney, Vero Beach securities attorney, Vero Beach securities lawyer Last modified: March 22, 2017