Shareholders of CommonWealth REIT (NYSE:CWH) are continuing their fight for control of the company from REIT Management and Research, or RMR. Simply, RMR, appears to be destroying shareholder value while enriching themselves and ignoring many of the now outspoken owners. Read more from my previous article on CWH.
If CWH shareholders are successful in halting a secondary offering of over 30 million shares, it could inspire similar actions at RMR associated companies, such as Travel Centers of America (NYSEMKT:TA), Government Properties (NYSE:GOV), Select Income (NYSE:SIR), and Hospitality Properties (NYSE:HPT). If we see more lawsuits, that could signal the end of REIT Management and Research, and significant gains in the companies it currently manages. Several of the companies under their tutelage trade well below book value (most notably CWH and TA), so I would expect these shares to perform the best if RMR's grip on these companies loosens.
The lawyers for The Delaware County Employees Retirement Fund, Chimicles and Tikeliss LLP, are reaching out to shareholders eligible and willing to be additional plaintiffs in the case, "The Delaware County Employees Retirement Fund v, Barry M. Portnoy, et. al."
The more shareholders that speak out against management, the more likely the court will act appropriately and protect shareholders' rights. You must be a current shareholder and remain one through litigation. No monetary awards will be directly released to plaintiffs, this is not a class-action, but it will be distributed directly to Commonwealth REIT.
[If interested, go to the bottom of the page and email the attorneys working on the case.]
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CWH, TA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I hold an options straddle expiring March 16th, with a strike of $22.50.