The White Law Group continues to investigate the liability that brokerage firms may have for recommending nontraded REITs to their clients.
One such non-traded REIT, Inland Western REIT (now called Retail Properties of America, Inc.) attempted to remove the liquidity problem that is created by owning a non-traded REIT by taking the REIT public. Unfortunately, the IPO failed to come close to meeting expectations.
It is being reported that Retail Properties' $8 offering price not only came up well short of its expected pre-offering price of $10 to $12, but it took some reverse-stock-split engineering just to get the price to $8.
Apparently, for those investors who paid $10 a share for Inland Western REIT, the actual split-adjusted value of the stock is less than $3 per share (a decline of over 70%).
This will obviously do little to dissuade those contemplating lawsuits to stop from filing their claims.
Based on The White Law Group's experience, brokerage firms may have liability for failure to perform the necessary due diligence on Inland Western REIT before recommending it for sale to its clients.
For more information on The White Law Group's investigation, visit:
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.