KBS REIT Securities Investigation
The White Law Group, LLC is investigating the liability brokerage firms may have for recommending KBS REIT to investors.
KBS Real Estate Investment Trust, Inc. is a publically non-traded REIT. The REIT went effective in January 2006 and closed its offering in May 2008 after raising $1.7 billion in investor equity.
Shareholders of KBS REIT approved a plan of complete liquidation and dissolution of the company in January. The REIT estimated that if it successfully implemented the liquidation plan, stockholders would receive between approximately $3.27 and $3.68 per share for each share of the common stock that they owned. The initial liquidating distribution would reduce this estimated range by $1.00 per share.
KBS REIT said that the net proceeds from the remaining asset sales will be distributed to stockholders by January 27, 2019. The dissolution filing will not affect the right of shareholders to receive distributions under the liquidation plan and Maryland general corporation law.
The White Law Group has handled a number of claims involving non-traded REITs such as KBS REIT. In those claims, the firm has alleged, among other things, that KBS REIT is (1) high-risk and unsuitable for our clients given their financial situation, needs and investment objectives, (2) that the risks of the investment were not fully disclosed to them, and (3) that the brokerage firms that sold the investments failed to conduct the proper due diligence with respect to the investments (as the firms are required to do by FINRA Rules).
Unfortunately, some brokers may have downplayed the risks associated with these non-traded REITs. They have misled investors into thinking that they are “safe” investment products.
The high sales commission brokers earned for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors. Your typical stock or mutual fund offers 1%-2% commission. The commission for non-traded REITS like KBS REIT, are often 7% - 10%.
“Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. says D. Daxton White, Managing Partner of The White Law Group.
“These types of investments are unsuitable for many investors. Brokerage firms may be held liable for losses if they overlooked suitability requirements or failed to disclose the risk when recommending KBS REIT to clients.”
To determine whether you may be able to recover investment losses incurred as a result of your purchase of KBS REIT, please contact The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm. The firm has offices in Chicago, Illinois and Vero Beach, Florida.
The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
595 21st Street
Vero Beach, FL 32960
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