Investor Alert: KBS REIT files for Dissolution
Did your broker recommend an investment in KBS REIT which resulted in investment losses? If so, the securities attorneys at The White Law Group may be able to help you through FINRA Arbitration.
KBS Real Estate Investment Trust, Inc., publicly registered non-traded REIT, went effective in January 2006 and closed its offering in May 2008 after raising $1.7 billion in investor equity.
In March 2017 we reported, KBS REIT stockholders approved a plan of complete liquidation and dissolution of the company in January. The company estimated that if it successfully implemented the liquidation plan, stockholders would receive between approximately $3.27 and $3.68 per share for each share of the common stock that they owned. The initial liquidating distribution would reduce this estimated range by $1.00 per share.
KBS REIT said that the net proceeds from the remaining asset sales will be distributed to stockholders by January 27, 2019. The dissolution filing will not affect the right of shareholders to receive distributions under the liquidation plan and Maryland general corporation law.
Shares of KBS REIT were originally sold for $10.00 each. The company previously paid special distributions of $0.65 per share to stockholders for property sales from 2012 through 2015.
The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) including KBS REIT.
In those claims, the firm has alleged, among other things, that REITs were:
(1) high-risk and unsuitable for our clients given their financial needs and investment objectives
(2) that the risks of the investment were not fully disclosed to them
(3) that the brokerage firms that sold the investments failed to follow FINRA rules to perform adequate due diligence.
Non-Traded REITs are Complex and Risky
Non-Traded REITs are complex products that involve a significant degree of risk. These investments are unsuitable for many investors. Brokerage firms may be liable for losses if they overlooked suitability requirements or failed to disclose the risk when recommending KBS REIT to clients.
If you lost money investing in KBS REIT or another non-traded REIT, please call The White Law Group at 1-888-637-5510 for a free consultation. It may be possible to recover your losses through a FINRA arbitration claim against the brokerage firm that sold you the investment.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on The White Law Group, please visit www.whitesecuritieslaw.com.