Written by 1:00 pm Blog, Securities Fraud Articles

Recovery of Behringer Harvard Losses

Have you received lowball offers for your Behringer Harvard Short-Term Opporunity Fund I or Behringer Harvard REIT I investment?  Are you concerned about losses you may have incurred in these products?  If so, The White Law Group may be able to help.

According to statements on the website of Behringer Harvard Holdings LLC, unsolicited lowball offers for less than 5% of the shares outstanding were made last month for two Behringer Harvard deals, the Behringer Harvard Short-Term Opportunity Fund I, a limited partnership, and the Behringer Harvard REIT I Inc., a nontraded real estate investment trust.

Although these offers are likely below the current market value of these two funds, it does accentuate the problem with these investments – the limited market for their sale.  Unlike a traded REIT or mutual fund, non-traded REITs or real estate investments like Behringer Harvard are not traded on an exchange.  For those investors seeking to sell their investments, the secondary market (which is filled with vultures looking for bargain basement prices) is often the only option for selling these investments.

Fortunately, there is another option for investors seeking to recover losses they may have sustained – FINRA arbitration.

The White Law Group is currently representing many Behringer Harvard investors in FINRA arbitration claims against the broker-dealer that initially recommended the investments.  FINRA arbitration is an opportunity to hold the financial professionals that recommended these investments responsible for their recommendation.  Brokerage firms and financial professionals have a fiduciary duty to research an investment prior to recommending it for sale to make sure it is appropriate.  They also have an obligation to make sure the investment is appropriate in light of the investor’s age, investment experience, net worth, and investment objectives.

It is now apparent that many firms misrepresented the risks and liquidity of Behringer Harvard and many unsophisticated investors bought these investments largely based on the income that was promised.  It is also now clear that firms sold Behringer Harvard because of the large commission that the investment paid to the firms for selling the product.

If you are an investor in Behringer Harvard Short-Term Opportunity Fund or Behringer Harvard REIT, you may have a claim to recover your losses or to be put back to where you were before you bought the investment (this is typically called a claim for rescission).

For a free consultation, please call a securities attorney with The White Law Group at 312/238-9650.

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 Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://whitesecuritieslaw.com.

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