Lightstone Value Plus REIT III | Securities Attorneys for Investment Losses

Lightstone Value Plus REIT III Board Seeks to Eliminate Shareholders Rights 

Have you suffered investment losses in Lightstone Value Plus REIT III? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 

Lightstone Value Plus REIT III, a non-traded real estate investment trust, reportedly engaging in investing and owning commercial and residential real estate properties. 

According to FactRight, a due diligence company, on October 21, 2022, Lightstone REITs (Lightstone Value Plus REIT I, Inc., Lightstone Value Plus REIT II, Inc., Lightstone Value Plus REIT III, Inc.) are asking shareholders to approve proxies which will “strip shareholders of meaningful rights.” 

The three Lightstone REITs are reportedly seeking amendment of their respective charters to remove multiple NASAA shareholder protections through various proxy proposals.  

According to FactRight, the removal of these charter provisions will reduce shareholder participation in the governance of the REITs, and “enhance the power of the respective boards of directors, and eliminate protections for shareholders, including provisions that seek to guide the Lightstone REITs toward liquidity events for shareholders.”  

The Problem with Non-traded REITs   

The White Law Group is continuing its investigation into broker dealers who may have improperly recommended Lightstone Value Plus REIT III to investors. To learn more see Lightstone REITs Amendments Eliminate Protections for Shareholders  .

As we previously reported, on March 19, 2020, the Board of Directors amended the share repurchase program to remove stockholder notice requirements, and also approved the suspension of all redemptions effective immediately. 

Liquidity can be a problem for investors of non-traded REITs. Investors looking to sell a non-traded REIT investment often have difficulty finding a buyer and can suffer significant losses on the sale. 

As of November 2023, shares of Lightstone were listed for sale for just $4.50 per share on Central Trade & Transfer, a secondary marketplace for non-traded REITs and other alternative investments. This may indicate losses for investors as the original offering price was $10.00 per share. 

Non-traded REITs, like Lightstone, involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. These types of investments are more complex, lack liquidity and therefore better suited for sophisticated and institutional investors. 

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. 

If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses. 

Free Consultation with a Securities Attorney

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Lightstone Value Plus REIT III, please contact 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 Seattle, Washington. For more information on the firm, please visit WhiteSecuritiesLaw.com.