Real estate securities are financial instruments that derive their value from real estate assets, so investors gain exposure to the property market but do not directly control or own physical properties. These securities represent ownership or debt interests in companies that own, operate, or finance real estate, with the most common type being a real estate investment trust (REIT).
When firms misrepresent or omit material information to induce investors to trade real estate securities, investors may sustain tremendous financial losses and qualify to file real estate securities fraud class actions. If you are interested in joining this type of lawsuit, contact the securities fraud class action attorneys at Silver Law Group to evaluate your case and determine the most appropriate legal action to pursue.
Real estate securities fraud typically involves deceptive practices related to investing in real estate through financial instruments rather than the direct purchase of property. Some common methods include:
While all investments are risky, non-traded REITs are a common target for fraud due to limited information and less regulatory oversight compared to publicly traded investments. If you have lost money to suspected real estate fraud, consider speaking with the securities fraud class action attorneys at Silver Law Group to discuss potential next legal steps. We work on a contingency fee basis, so there is no cost to secure quality representation.
In a real estate securities fraud class action, a group of investors sues a company for its fraudulent or deceptive practices related to a real estate-based securities, such as a REIT. The process often begins after a negative disclosure about the company is made public, such as misstated financials, which causes the stock price of the REIT or other securities to drop.
A lead plaintiff is the investor (or group of investors) with the largest financial interest in the case and who is approved by the court to represent the entire class. The vast majority of class members play a passive role, simply waiting for the lawsuit to conclude. For investors with large losses, applying to become a lead plaintiff offers a more active role in the litigation, including overseeing lead counsel and participating in settlement discussions.
An investor can choose to opt-out of the class action to pursue an individual lawsuit. This is generally only advisable for investors with substantial losses who believe they can achieve a better outcome on their own. Most cases end in a settlement rather than a trial. If a settlement is reached, a claims administrator manages the process of distributing the funds to class members. The amount each investor receives is based on their individual financial losses.
The securities fraud attorneys at Silver Law Group have extensive experience handling real estate securities fraud class actions against brokerage firms, financial institutions, banks, and other entities liable for misconduct involving non-traded REITs and other real estate investments. Illiquid REITs are frequently sold by broker-dealers that earn substantial commissions for the sale of REITs but are required to do reasonable due diligence and make sure the investment is suitable for their clients. Our attorneys have extensive experience representing investors in stockbroker misconduct or the fraudulent sale of these products through FINRA arbitration.
We offer a free consultation to help you understand your legal options and determine if you are eligible to join a class action lawsuit. Our firm operates on a contingency fee basis, which means we do not get paid unless and until we secure a recovery for you. Contact Silver Law Group today to speak with an attorney about your losses and the parties responsible for the deception.
