Phillips Edison & Company Lawsuit Investigation Update
The White Law Group continues to investigate potential securities claims involving broker dealers who may have unsuitably recommended high risk non-traded REITs such as Phillips Edison & Co. to investors.
Phillips Edison & Company, Inc., an internally-managed non-traded REIT, owns and operates grocery-anchored shopping centers.
The REIT’s proposed one-for-four reverse stock split announced last November has apparently been delayed due to “market conditions,” according to filings with the SEC.
Instead, on March 25, 2021, the board of directors says it is reviewing alternatives in order to provide liquidity to the Company’s stockholders.
In connection with the liquidity alternative review process which is currently limited to repurchases resulting from the death, qualifying disability, or the declaration of incompetence of stockholders, has been suspended. The March 31, 2021 DDI repurchase will not be executed and will remain suspended until further notice.
The Dividend Reinvestment Plan (DRIP) has been suspended, beginning with the distribution payable April 1, 2021. Stockholders will reportedly receive their full distribution ($0.02833333 per share) in cash.
Update on Tender Offer
On December 30, 2020, the REIT repurchased 100% of shares tendered during its offer to purchase up to 17.4 million shares of the Company’s common stock, at $5.75 per share, which was settled in early January 2021.
Shares of the REIT were originally sold for $10.00 per share, which may indicate losses for investors.
The Trouble with Non-traded REITs
The trouble with non-traded REITs, like Phillip Edison & Company Inc., is that they are complex and inherently risky products.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
Filing a Complaint against your Brokerage Firm
If you have suffered losses investing in Phillips Edison & Company Inc., please contact The White Law Group at 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 firm, visit www.WhiteSecuritiesLaw.com.