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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
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Rex Securities Law
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Rex Investment Loss Recovery Blog
  • Class Action Filed Against Behringer Harvard REIT 9 comments
    Oct 1, 2012 1:59 PM

    Behringer Harvard REIT I, one of the largest nontraded real estate investment trusts with over $4 billion in assets, was recently sued in Federal Court in the Northern District of Texas by an investor who purchase 1,275 shares from 2004 to 2008. The suit, which also names Behringer Harvard Holdings, CEO Robert Aisner and other company executives, may lead to the formation of a class action.

    The complaint, which may be viewed here, alleges that the company: "sought to mask the poor performance by paying investors back with their own money, while at the same time draining the company of millions of dollars" for Behringer Harvard and its executives.

    Behringer Harvard has seen its value drop from its $10 per share offering price to a recent value, as estimated by the company itself, of $4.64. Since these investments are not traded on any conventional exchange, the actual amount an investor desiring to liquidate immediately can obtain is often 20-30% less than the company's estimated value. For prior articles related to the secondary market for non traded REITs, go to this link.

    Nontraded REITs were sold to many retirees who believed that they were similar to bonds, that they would pay out income on a steady basis and that the original purchase price was not subject to such drastic decline. In addition, most investors were unaware of the fact that it may be difficult or impossible to liquidate the investments.

    While class actions may provide some relief for investors, in the case of these REIT investments, in most cases an investor will be likely to have better success with an individual arbitration filed with FINRA. For a discussion on class actions vs. arbitration, see here.

    If the risks associated with owning a nontraded REIT like Behringer Harvard were not adequately explained to you, pursuing an arbitration proceeding with FINRA may lead to the recovery of some or all of your investment losses.

    We have been helping investors recover stock market losses for more than 20 years. Please contact us if you have questions.

    Free Consultation

    Rex Securities Law

    561 391 1900

    Themes: behringer harvard reit, behringer class action, behringer harvard litigation, behringer lawsuit, recover reit loss
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  •  
    Rich Di Taranto of SII Investments sold me $40,000 of Behringer Harvard Reit 1 in 2005. I reinvested the dividend and it was worth $$57,000. When REITs started having problems several years ago, I spoke with him regarding taking the dividend and not reinvesting it. He assured me that I was safe. Finally I stopped reinvesting the dividend on my own, but it was too late. As my advisor he should have ADVISED ME to stop taking the dividend . Long story short, my $57,000 is now valued at $23,000, just down from $26,000. If anyone is suing him AND Behringer Harvard, I would like to know about it. Please contact me at Gabymalec@aol.com.
    8 Jan, 06:08 AM Reply Like
  •  
    My husband invested $35,000. and now its worth $14,117.41 Is there any way he can get his $35,000. back?
    13 Jan, 06:18 PM Reply Like
  •  
    There is no way to get your $35 K back and its worth a lot less than $14,000, if you could find a buyer. If you pay a lawyer, that money will be gone, too. B-H will file for bankrupcty when the managers are done skiming.
    5 Feb, 06:14 AM Reply Like
  •  
    I'm in the same boat. I was advised by my financial advisor how great of investment this was back in 2005. I invested nearly $34,000. I saw things going south and asked to move my money but was told I was unable to. My investment in now worth just under $14,000. Very upsetting. Is there anybody that can help?
    15 Jan, 01:50 AM Reply Like
  •  
    Please contact my office at 561 391 1900 and speak with Nan Thompson to provide more details so we can evaluate your claim.
    15 Jan, 08:20 AM Reply Like
  •  
    I bought these with Ira pull out money. It was a very bad investment that I was assured by my finicial advisor at National City Bank now Pnc was a great investment that could be liquidated at any time. I only invested $15,000 thank God. I feel I was lied to and cheated.
    28 Jan, 08:10 AM Reply Like
  •  
    I'm in the same boat but with a lesser amount. I am definitely interested in any recourse available.
    30 Jan, 05:24 AM Reply Like
  •  
    I also invested on behalf of my dad who was retired and needed an income other then SS to pay for his long term care costs. When the residential market started to go south, I asked about the REIT and was assured that all was A ok. Then when I asked if we could liquidate and move to something else, I was told the liquidation option was no longer valid. Six digit investments now worth nothing basically, because you don't have access to any of it.
    14 Feb, 05:59 PM Reply Like
  •  
    it's my understanding that the board forced a resignation of the CEO, Aisner, so wondering if this was done for legal protection
    12 Mar, 04:09 PM Reply Like
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