Inland American REIT Investors complain to SEC

Inland American Real Estate Trust Inc., the largest nontraded real estate investment trust, (also known as nontraded REITs), worth $10.8 billion, reported on March 13, 2013, that some of their investors are alleging the REIT's management failed in its fiduciary responsibility, resulting in false valuations and excess fees being paid to the REIT's business manager.

Inland REIT stated that two groups of shareholders are involved in a Securities and Exchange Commission investigation. The investors have asked the REIT's board to conduct investigations into their concerns. One group of shareholders alleges that Inland American's management “falsely reported the value of our common stock until 2010, caused us to purchase shares of our common stock from stockholders in excess of their value, and disguised returns of capital paid to stockholders as REIT income, resulting in the payment of fees to the business manager to which it was not entitled.”

Inland American REIT is one of many large nontraded REITs sold to investors during the real estate peak at $10 per share but have suffered dramatic drops in valuations since then. At the end of 2012, the REIT said its estimated per share value was $6.93 per share, down from $7.22 per share at the end of 2011.

If you purchased Inland American REIT and sustained investment losses due to your stock broker or financial advisor’s recommendations, call Soreide Law Group, PLLC, for a free consultation on how to potentially recover your losses at 888-760-6552.