Invest in KBS REIT I in 2006? Time is Running Out to Bring Claim.
TIME IS RUNNING OUT TO BRING CLAIMS.
For those investors considering bringing a claim for losses on KBS I for misrepresentation of the nature of the investment or other claims related to the negligence or fraudulent conduct of the selling firm or broker, it is important to act quickly. With limited exception, investors claims will be brought in an arbitration proceeding before the Financial Industry Regulatory Authority (FINRA), whose rules require that cases be brought within six years, measured most commonly from the date of purchase.
This means that for investors who purchased on the IPO or in early 2006, it may already be too late to institute a claim. For others purchasing later in 2006, the six years will soon run on those claims so it is important to act quickly to preserve your legal rights.
In its March 26, 2012, letter to shareholders, KBS I made several announcements that were bad news to investors:
- Share value is down again. Shares originally sold at $10 are now $5.16.
- Distributions were one of the key reasons most investors purchased KBS REIT I. The company has suspended further distributions.
- Share Redemption plan has been amended so that the only redemption allowed are in the event of death or disability. Investors needing liquidity now can only look to the secondary market, where sales are usually at a 20% or more discount from the estimated value.
- Dividend Reinvestment plan terminated.
If you have questions about your legal rights in connection with losses you have in KBS REIT I, or any other REIT investment, please do not hesitate to contact us at 561 391 1900. We represent investors nationwide. Free initial consultation.