Securities arbitration lawyers are currently investigating possible claims on behalf of investors who suffered losses as a result of their purchases of Inland Western Real Estate Investment Trust, which is now known as Retail Properties of America. Many of the investors who suffered losses as a result of Retail Properties of America were purportedly customers of Ameriprise Financial. Some Ameriprise customers have already come forward with potential claims.
In April 2012, Retail Properties of America was converted to a publicly-traded New York Stock Exchange company from a non-traded REIT. Last June, the value of the REIT was reported at $6.95 per share. Some brokers advised investors to remain invested in the REIT, given the decline, and asserted that it should rebound following the IPO. At the IPO, Retail Properties was expected to be offered at $10 to $12, but its actual offering of $8 was well below this expectation. Furthermore, the offering price of $8 resulted from a reverse stock split and the actual value of Retail Properties was around $3.20.
As a public non-traded REIT, the Inland Western REIT may have carried a high commission which motivates brokers to make the recommendation to investors despite the investment’s unsuitability. The commission on a non-traded REIT is often as high as 15 percent. Non-traded REITs, such as Inland Western REIT, carry a relatively high dividend or high interest, making them attractive to investors. However, non-traded REITs are inherently risky and illiquid, which limits access of funds to investors, according to stock fraud lawyers. If Ameriprise made unsuitable recommendations to clients to invest in Inland Western, this is a stark contrast to its claim that the company takes the “time to understand your dreams and goals, recommend strategies and product solutions to help you make progress toward those dreams and goals and help you implement these solutions and monitor progress.”
Allegedly, Ameriprise may have represented Retail Properties of America as a safe, low-risk investment. If they did, the product was misrepresented and clients may be able to recover losses through securities arbitration, according to securities arbitration lawyers. Furthermore, Ameriprise allegedly put a substantial amount of some clients’ assets in the REIT, which resulted in an over-concentration that was unsuitable for investors.
If you are an Ameriprise customer who suffered losses as a result of an unsuitable recommendation or over-concentration of stock in Inland Western or Retail Properties, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.