Griffin Capital Essential Asset REIT Securities Investigation
The White Law Group is investigating potential securities claims involving the liability broker dealers may have for improperly recommending Griffin Capital Essential REIT or Cole Office & Industrial REIT to investors.
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, has merged with Cole Office & Industrial REIT (CCIT II), an unaffiliated non-traded REIT in a $1.2 billion stock-for-stock transaction.
For each share of Cole Office & Industrial REIT common stock, stockholders received 1.392 shares of Griffin Capital Essential Asset REIT Class E common stock, according to filings with the SEC.
The merger reportedly combined two similar portfolios of corporate office and industrial properties with long-term, net leases to creditworthy tenants.
In exchange for each share of Cole Office & Industrial REIT common stock, stockholders received 1.392 shares of Griffin Capital Essential Asset REIT Class E common stock.
How Does a Merger Affect Shareholders?
Companies often merge as part of a strategic effort to boost shareholder value, often by creating new business lines and/or gaining greater market share. However, the economic environment at the time of the merger, size of the companies and management of the merger process all play a part in future returns for shareholders.
Shareholders may experience a significant loss of voting power, and while the spike in trading volume tends to inflate share prices, if economic conditions are not favorable at the time of the merger, shareholders may see significant losses
The Trouble with Non-Traded REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs such as Griffin Capital Essential Asset REIT to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have invested in Griffin Capital Essential Asset REIT or Cole Office & Industrial REIT and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
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.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.