Investment fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses in the CommonWealth REIT. Investigations into the CommonWealth REIT began when allegations were made in a lawsuit filed by an investor in the U.S. District Court for the District of Massachusetts regarding false and misleading statements about the REIT’s prospects and financial standings that were allegedly made between January 10, 2012 and August 8, 2012. Investigations continue in light of a recent letter sent in June 2013 urging shareholders to vote for the removal of all of the REIT’s directors.
The letter was sent by Corvex Management LP and Related Fund Management LLC. Corvex and Related are separately managed investment funds. Together, they own around 9.6 percent of all outstanding CommonWealth REIT common shares.
The letter from Corvex and Related states: “An outdated management structure, abysmal corporate governance, and mismanagement of operations have in our view been a significant driver in the 45 percent decline in CommonWealth REIT’s stock price over the last five years. We believe this continued value destruction is by design — the direct result of self-interested actions taken by CommonWealth’s current Board of Trustees and its external manager, REIT Management and Research LLC (RMR) which is owned by Barry Portnoy and his son, Adam.”