A lawsuit was filed by an investor in NYSE:CWH shares over possible breaches of fiduciary duty and other current long-term NYSE:CWH stockholders should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 03/18/2013 -- A lawsuit was filed by a current investor in NYSE:CWH shares against certain officers and trustees of CommonWealth REIT over alleged breaches of fiduciary duty and waste of corporate assets.
Investors who are current long term stockholders in CommonWealth REIT (NYSE:CWH) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that there is a long-standing pattern and practice of self dealing by the company’s founder, president and managing trustees. The plaintiff says they have used their control of the company and its board of trustees to cause CommonWealth REIT to enter into a number of unnecessary and detrimental transactions. The plaintiff claims that the purpose of these transaction was not to benefit CommonWealth REIT but to increase the fees CommonWealth REIT pays to Reit Management & Research LLC, a company that is owned by two of the company’s key officers and trustees.
The plaintiff alleges that in order to maximize the amount of money Reit Management & Research LLC makes, CommonWealth REIT was forced to buy and sell billions of dollars’ worth of property unnecessarily and conduct numerous spin-offs of the company’s most stable assets.
Furhtermoer, the plaintiff alleges that certain defendants caused CommonWealth REIT to mislead te market about its health and business prospects.
Beginning in Janaury 2012, CommonWealth REIT paid dividends to ist shareholder s high as $0.50 per common shares. The plaintiff alleges that certain defendtant stated that the company’s financial health underlying these dividends was solid and therefore the high dividend rates would continue to going forward.
However, then on August 8, 2012, CommonWealth REIT (NYSE: CWH) announced financial results for the quarter and six months ended June 30, 2012. During a conference call CommonWealth REIT management said that the “weak leasing market” and “declining occupance” could force the company to adjust the dividend rate in the coming months.
On October 9, 2012, CommonWealth REIT cut its dividentd payment in to $0.25 per common shares.
Shares of CommonWealth REIT (NYSE:CWH) declined from as high as $19.36 per share on July 20, 2012, to as low as $13.58 per share on October 26, 2012.
Those who are current long term investors in CommonWealth REIT (NYSE:CWH) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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