Behringer Harvard REIT I, a $4.4 billion real estate investment trust, has been sued in the U.S. District Court for the Northern District of Texas by several investors, who seek to advance a class action against the REIT, Behringer Harvard Holdings LLC, Robert Aisner, chief executive and president of the holding company, and other Behringer Harvard executives on behalf of all persons and entities that purchased or otherwise acquired Behringer Harvard REIT I securities during the period between February 19, 2003 to the present. The Court is poised to appoint lead plaintiffs and lead counsel in the action.
Behringer Harvard is one of more than a half dozen large nontraded REITs that has seen its value dramatically decrease in the wake of the real estate collapse. During its three offerings in 2003, 2005, and 2006, shares were valued at $10 versus the recent value of $4.64 per share, as reported by Investment News upon commencement of the class action.
The complaint alleges that the company and its directors violated tender offer laws and engaged in self-dealing in connection with the rejection of two tender offers by third parties. The complaint does not seek damages for common law or federal securities fraud with respect to sales of the Behringer Harvard REIT I by financial advisors to individual investors.
Individual investors who have suffered damages as a result of investing in the Behringer Harvard REIT I are unlikely to see great benefit from the class action against the company and its executives. Rather, individual investors should seek damages directly from the brokerage firms who sold them Behringer Harvard REIT I shares upon theories that the brokerage firm misrepresented or failed to state risks associated with the Behringer Harvard REIT I, failed to thoroughly investigate the Behringer Harvard REIT I before selling shares to investors, and failed to properly evaluate whether the Behringer Harvard REIT I shares were suitable for an individual’s specific circumstances.
Investors who have lost money in the Behringer Harvard REIT I can file FINRA arbitration claims against the brokerage firms who sold this high risk, unsuitable investment to them. Sonn Law Group specializes in representing investors (not brokerage firms) in securities arbitration and investor fraud cases throughout the country. Sonn Law Group has represented numerous investors in FINRA arbitration claims against the brokerage firms who sold illiquid, high-commissioned, non-traded investments and REITS, such as the Behringer Harvard Strategic Opportunity Fund I, Behringer Harvard REIT I, or Behringer Harvard Opportunity REIT I. Sonn Law Group continues to investigate other REITS and non-traded funds, such as Wells REIT II, Wells Timberland REIT, Inland Western Real Estate Investment Trust, Inland American Real Estate Trust, Cole REIT II, Cole Credit Property Trust II, Hines Real Estate Trust, Grubb & Ellis Apartment REIT, CNL Lifestyle Properties, Dividend Capital REIT, and KBS REIT I, and Behringer Harvard investments on behalf of defrauded investors. To learn more, including whether you may have a claim for the Behringer Harvard REIT I or other investment losses, please call us at 844-689-5754 or complete our “contact form.”