If you are a shareholder in Lightstone Value Plus REIT I, Inc., Lightstone Value Plus REIT II, Inc., or Lightstone Value Plus REIT III, Inc., you may have a potential FINRA arbitration claim. This claim can arise if your investment was recommended by a financial advisor without a reasonable basis or if the nature of the investment was misrepresented.
Image: Money_REIT
The Lightstone REITs have been sold to the public since 2006 (Lightstone I), 2009 (Lightstone II), and 2014 (Lightstone III). Surprisingly, none of the three REITs have been listed on a public exchange or become liquid, even after more than a decade.
Recently, the Lightstone REITs have proposed proxy amendments, which have raised concerns among shareholders. These amendments aim to eliminate durational provisions, fiduciary duties, certain protections in "roll-up" transactions, and quorum requirements. While management claims that these proposals will offer more flexibility and potential liquidity, critics argue that shareholders are being asked to sacrifice important rights without a clear plan for the REITs' future liquidity.
Non-traded REITs present several risks that may not be immediately apparent to retail investors, often due to inadequate explanations from financial advisors. One significant risk is the high up-front commissions, which typically range from 7-10%. Additionally, investors in non-traded REITs are usually charged due diligence and administrative fees, further draining their potential returns.
Furthermore, non-traded REITs are generally illiquid investments. Unlike traditional stocks and mutual funds, they do not trade on national securities exchanges. Many investors find themselves trapped in these investments, as their ability to exit is limited. Typically, investors can only redeem their investment directly with the sponsor or sell in a limited secondary market, often at a disadvantageous price.
If you are interested in discussing a potential claim, don't hesitate to contact the Law Office of Christopher J. Gray, P.C. Our seasoned securities arbitration lawyers can provide you with a confidential consultation at no cost. Whether you are in New York, Wisconsin, or anywhere in the country, our attorneys, in collaboration with local counsel if necessary, handle cases nationwide.
Remember, this article is intended as attorney advertising and is not an official announcement. Your rights as a shareholder are valuable, and you deserve clarity and proper representation regarding your investment.
Conclusion
As a shareholder in Lightstone Value Plus REITs I, II, or III, it's important to understand your rights and options. If you believe that your investment was recommended without a reasonable basis or misrepresented, you may have grounds for a FINRA arbitration claim. Seek professional advice and protect your interests as an investor.
