NEW YORK, May 10, 2012 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that it is investigating claims on behalf of investors who purchased Inland American Real Estate Trust, Inc. ("Inland American") from full-service brokerage firms. It was recently reported that Inland American, the largest nontraded real estate investment trust ("REIT") in the industry, is under investigation by the U.S. Securities and Exchange Commission ("SEC"), for potential violations of federal securities laws regarding its fees and administration.
According to Inland American's quarterly report, the company "has learned that the SEC is conducting a nonpublic, formal fact-finding investigation to determine whether there have been violations of certain provisions of the federal securities laws." Those potential violations relate to "the business manager fees, property management fees, transactions with affiliates, timing and amount of distributions paid to investors, determination of property impairments, and any decision regarding whether the company might become a self-administered REIT."
Many investors purchased Inland American at the recommendation of their brokers who advised them that it was a low risk, safe investment. In some cases, brokers placed a substantial portion of their client's assets in the REIT, creating an over-concentration in a single product. Consequently, Inland American investors may be able to recover some of their losses by filing a securities arbitration claim against their full service brokerage firm, for sales practice violations in connection with the sale of this REIT. Under FINRA Rules, brokerage firms have an obligation to make only suitable recommendations, and to fully disclose all risks associated with a recommended product. Moreover, brokerage firms have an obligation to conduct a reasonable investigation of the issuer before approving a securities product for sale to their customers.
Investors who purchased Inland American can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered significant losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms. K&T is handling numerous claims on behalf of REIT investors including Desert Capital REIT, Behringer Harvard Short-term Opportunity REIT, Behringer Harvard REIT, Inland Western n/k/a Retail Properties of America, Cornerstone Core Properties REIT, CIP Leveraged Advisors, and KBS REIT.
If you are an investor of Inland American or other REITs, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at www.nasd-law.com