The Law Office of Robert Wayne Pearce, P.A. has filed KBS REIT I claims to recover losses for investors in KBS Real Estate Investment Trust I ("KBS REIT I") after learning that shares which they purchased for $10 per share now have an "estimated" value of only $5.16. In his March 26, 2012 letter to shareholders, chief executive Charles Schreiber, Jr. also told Mr. Pearce's clients that they would no longer receive their monthly distribution payments, which had been reduced to less than $.53 per share.
Since the company halted its repurchase of shares in 2009, except in cases of death or disability, KBS REIT I investors are left holding illiquid, devalued shares that pay no distributions. Mr. Schreiber's statement to shareholders that the company is focusing its efforts "on attempting to maximize the amount of capital that we return to you over time" is little comfort to investors. His words are especially alarming to retirees, who are suffering from the loss of income they relied upon and have no hope of selling their shares for the price they paid in the foreseeable future. They see little light at the end of the tunnel.
As with most REITs, it appears that investors were routinely told that KBS REIT I was a safe investment whose share price was likely to remain stable. They were also told that it paid good dividends and was suitable for a retirement nest egg. They typically were not told that selling their shares could be problematic and that REITs were high commission products.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.