Texas REIT Misled Shareholders, Investor Claims

Law360, New York (September 18, 2012, 2:50 PM EDT) -- A shareholder of nonpublic real estate investment trust Behringer Harvard REIT I Inc. filed a putative class action suit in Texas federal court Monday, accusing the REIT of misrepresenting its true value and improperly enticing stakeholders to reject two tender offers.

The suit claims Behringer, a Maryland-incorporated REIT that is headquartered in Dallas, represented to shareholders that it would protect their capital while pursuing low-risk investments. But Behringer allegedly made risky bets on properties that are now in danger of foreclosure and operated what plaintiff Lillian...
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