Home REIT Faces Lawsuit From Shareholders
According to a report from QuotedData, Home REIT—a real estate investment company—is facing a lawsuit from shareholders. The plaintiffs contend that corporate leadership of Home REIT made improper material misrepresentations to investors, including using funds in a manner that was contrary to their representations. The company’s publicly traded share price is down significantly over the past year. In this article, Miami shareholder dispute lawyers discuss the collective action lawsuit in more detail.
Background: Home REIT Invests in Real Estate
Home REIT is a company based in the United Kingdom (UK). It operates a Real Estate Investment Trust or REIT. Broadly defined, a REIT is an investment entity that owns—and usually operates—income-producing real estate. For example, an REIT may control residential rental properties and/or commercial properties. Home REIT is largely invested in low-income residential properties in the UK. Notably, the company’s stock price is down by more than 50 percent since August of 2022.
Allegations: Investor Funds Used in “Improper” Ways
A collective action shareholder lawsuit has been filed against Home REIT. Among other things, the plaintiffs in the claim contend that corporate executives of the company made material misrepresentations to investors—using their money in improper ways. The company advertises itself as investing in residential real estate for the homeless and other low income individuals.
However, the shareholders contend that Home REIT was actually engaged in more comprehensive, undisclosed investments. They argue that those investments have led to a sharp drop in the company’s share price. Another issue is the Home REIT faces a risk of enforcement action from local authorities. Certain residential properties owned by the company are allegedly at risk of being classified as “unsuitable” as housing.
To be clear, the shareholder lawsuit is currently a pending legal matter. No wrongdoing on the part of any party has been determined by a court.
Shareholders have Important Legal Rights
For the most part, the interests of shareholders are protected by the corporate charter and bylaws of the company they hold shares in. That being said, in Florida, shareholders also have certain legal rights under state law, including the right to inspect certain corporate documents and records. All companies incorporated in Florida must respect the rights of their shareholders.
If you are a shareholder who has suffered financial losses due to the misconduct of corporate executives, you may have a claim against the company or against its individual executives. There are two types of shareholder lawsuits—Direct claims and derivative claims. An experienced Florida shareholder rights attorney can review your case and help you find the best solution.
Get Help From a Miami, FL Shareholder Litigation Attorney Today
At Pike & Lustig, LLP, our Miami shareholder law attorneys are committed to helping our clients find solutions that work. If you have any questions about your legal rights, we are prepared to help. Contact us today for a confidential consultation. We provide shareholder litigation throughout South Florida, including in Miami, Miami Beach, Fort Lauderdale, West Palm Beach, and Jupiter.