The White Law Group announces that it is investigating potential securities fraud claims involving Wells Timberland REIT.
According to reports, the board of directors of Wells Timberland REIT Inc. recently announced a devaluation of shares from $10 per share to an estimated value of $6.56 per share. This share price may even be higher than the secondary market value of the REIT. As such, investors in Wells Timberland REIT may have suffered losses between 35-50%.
Wells Timberland REIT had previously suspended the redemption of shares in the REIT. Cutting the share price and suspending the redemption of shares are two poor indicators of a REITs stability.
The White Law Group is investigating the liability that the brokerage firms and financial professionals that recommended Wells Timberland REIT may have for recommending this product.
Financial advisors and broker-dealers have a duty to their clients to perform the necessary due diligence on an investment before offering it for sale to their clients and to ensure that any investment recommendation that is made is suitable in light of the client's age, investment experience, net worth, and investment objectives.
Based on the news now available regarding Wells Timberland REIT, it appears that the firms that sold Wells Timberland REIT may have failed to perform adequate due diligence on the investment or to heed obvious red flags regarding the likelihood of success of this investment.
Additionally, the firm's prior dealings suggest that certain financial advisors may have misrepresented the risks of Wells Timberland REIT. Financial advisors often misrepresent the risks of non-traded REITs in order to push what is an extremely high commission product.
If you invested in Wells Timberland REIT and are interested in your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
For more information on the firm's investigation into Wells Timberland REIT, visit http://www.whitesecuritieslaw.com/2012/12/17/wells-timberland-reit-lowers-estimated-share-price/
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.