Class Action Complaint Brought Against REIT Formerly Known as Inland Western
A class action on behalf of investors has been brought against Retail Properties of America, Inc. (RPAI), formerly known as Inland Western Retail Real Estate Trust, Inc., which purchased shares of the non-traded Inland Western real estate investment trust (REIT) prior to the public offering and listing of RPAI on April 9, 2012, according to a Class Action Complaint filed in U.S. District Court. Members of the putative class have suffered enormous losses as a result of Inland’s misconduct, the Complaint further alleges. Many investors originally bought shares of Inland Western at approximately $10 per share, when the non-traded REIT was in the process of raising more than $4.5 billion from 2003 to 2005, the Complaint notes. Now these same investors are reportedly now holding RPAI stock worth about $3.20, valued on a split-adjusted basis.
Inland’s Size Creates Risk and Challenges for Investors
Inland American, based in Oak Brook, Illinois, is the biggest U.S. real estate investment trust not listed on a stock exchange, and has stockpiled a diversified portfolio that includes nearly 8,300 student-housing beds, 17 million square feet of retail space and more than 19,000 hotel rooms, including 191 in the Hotel Monaco in downtown Chicago. Inland American‘s large size and complex portfolio creates obstacles for the company’s executives as they try to maximize shareholder payouts. One option is to be publicly traded on the New York Stock Exchange, but this is risky as Wall Street analysts and institutional investors prefer real estate companies that focus on only one sector. Investors may spurn a REIT that operates in three.
Investment Fraud Lawyers Investigating
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.