Non-Traded REIT Fraud Lawyers

Shepherd Smith Edwards and Kantas Non-Traded REIT Fraud Lawyers Represent Lightstone Real Estate Income Trust Investors Against Brokerage Firms 

Our Skilled Non-Traded REIT Fraud Lawyers Go After Negligent Broker-Dealers 

If you are someone who invested in Lightstone Real Estate Income Trust, now called Lightstone Value Plus REIT IV, Inc., Shepherd Smith Edwards and Kantas (investorlawyers.com) can help you determine whether you have grounds for a securities fraud lawsuit against your broker-dealer. This non-traded REIT is an illiquid, privately traded unregistered security. It should only have been recommended to experienced, accredited investors. Yet there continues to be growing concern that Lightstone Real Estate Income Trust may have been allegedly unsuitably recommended to many retail investors, including older retirees.

What Is Lightstone Value Plus REIT IV and Why Are Investors Worried?

This non-traded REIT invests in debt obligations that fund development/redevelopment opportunities and originate preferred equity investments in development projects or mezzanine loans. It also is reportedly involved in loan portfolios with third parties. Initially sold for $10/share, Lightstone Real Estate Income Trust’s secondary market price listings are now much lower.

The non-traded REIT also significantly lowered monthly distributions while claiming that an 8% yearly return was no longer feasible. In March 2020, the non-traded REIT’s Board of Directors suspended monthly distributions. Even though the company reopened its share repurchase program in 2021, this was only related to hardship or the death of a stockholder and certain limits was put in place.

Lightstone Group, the nontraded REIT’s manager, came under fire a few months ago for purportedly wanting to change REIT charters and governance in ways that some contend would shift more power away from investors toward management. A November 2022 article in Investment News reports that even while these financial products have been marketed as possessing five-year life cycles with the objective of selling/returning capital to investors, sources are worried that this could purportedly leave REIT clients locked in with no exit.

Already, non-traded REITs are illiquid and generally can only be traded at highly reduced prices on the secondary market. Meanwhile, brokers make high commissions—in some cases up to 15%–on their sales.

Unfortunately, the lure of high commissions is one of the purported reasons that many non-traded REIT investors have become the victims of unsuitable investment recommendations and/or misrepresentations and omissions by brokers that either allegedly downplayed the risks or neglected to conduct proper due diligence.

How Can Our Trusted Lightstone Non-Traded REIT Fraud Lawyers Help?

Shepherd Smith Edwards and Kantas’ team of Non-Traded REIT Fraud Lawyers have been investigating this non-traded REIT and pursuing the brokerage firms that allegedly unsuitably sold Lightstone Real Estate Income Trust to investors. This includes a FINRA lawsuit we filed against McNally Financial Services on behalf of an older couple who lacked the investing experience and risk tolerance level to be involved in non-traded real estate investment trusts.

When you work with our savvy non-traded REIT investment fraud lawyers, you are retaining our entire team of securities law professionals who are adept and knowledgeable about these types of investment, including all of the Lightstone REITs. If you contact us today, we can help you explore your legal options during your free, no-obligation case consultation.

Over the last three decades, our dedicated non-traded REIT fraud lawyers have recovered many millions of dollars for investors through litigation, mediation, and arbitration. More than 90% of our clients have received full or partial financial recovery from their brokerage firms.

How To Reach the Non-Traded REIT Fraud Lawyers of  Shepherd Smith Edwards and Kantas: 

Throughout the United States, call (800) 259-9010 today or contact us online.