New York Securities Lawyer Blog
On November 7, 2024, a class action lawsuit was filed against Lightstone Value Plus REITs I, II, III, their external advisers, and their 2022 directors, in New Jersey Federal Court. The Lightstone Value Plus REIT is a real estate investment trust focused on acquiring and managing income-producing properties, primarily residential and commercial. It aims to provide investors with regular income and long-term capital appreciation by investing in a diversified portfolio of real estate assets. The investors who filed the claim state that Lightstone breached their contract and fiduciary duty as a company. They also claimed that proxy statements produced by Lightstone, an information packet used to show the outlook for the fiscal year, had misleading and missing information. Investors alleged that officers and directors of the company were withholding dividends from investors.
A non-traded REIT can be risky for uninformed investors because it lacks the liquidity of publicly traded REITs, meaning it’s harder to buy or sell shares quickly. Additionally, these REITs often have high fees, less transparency, and may have more complex valuation methods since they are not traded on an exchange. Because of the high fees involved, there may be instances where your advisor could have potentially recommended this product to you without fully explaining the risks involved with Lightstone Value Plus REIT.
Our firm has extensive experience successfully pursuing similar claims in FINRA arbitration. If you believe your advisor recommended that you invest in Lightstone Value Plus REITs I, II, or III, please reach out to our firm at 212-696-1999 for a free consultation.