According to recent reports, Daniel Goodwin, chief executive of Inland Real Estate Group of Cos. Inc., has criticized the timing of the IPO Retail Properties of America Inc.
According to a new lawsuit, the REIT had told investors in January 2011 that they should expect shares to be valued at $17.25 before the offering.
Adjusted for the stock split, the REIT’s shares were actually diluted to $3.20 a share at the time of the offering, significantly less than the $10/share most people paid for the REIT.
In an interview Thursday, Mr. Goodwin was quick to note that Inland has no control over Retail Properties of America.
A lawsuit seeking class action status has also been filed in the U.S. District Court for the Northern District of Illinois.
When asked whether Inland would join the class action against Retail Properties of America, Mr. Goodwin said: “We have discussed various potential actions but haven’t reached a conclusion. Our interests are clearly aligned with the shareholders.” (Although the company no longer has any control over operations, Inland Real Estate Group apparently owns a substantial amount of shares in Inland Western.)
The White Law Group continues to file lawsuits on behalf of Inland Western, and other non-traded REIT, investors. Those claims typically seek to hold the brokerage firms that sold these products responsible for their role.
Brokerage firms have a fiduciary duty to perform due diligence on any investment prior to offering it for sale to its clients. Based on what is now known about Inland Western REIT, it appears clear that the brokerage firms that sold the REIT failed to perform the adequate due diligence and sold the investment because of the large commission the product offered (approximately 7%) and not because the investment was in the best interest of investors.
If you have suffered losses in Inland Western/Retail Properties of America, please call the REIT fraud attorneys of The White Law Group at 312/238-9650 for a free consultation.
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.