CommonWealth REIT Sued Over Alleged Board Conflicts

Law360, New York (October 4, 2013, 7:06 PM EDT) -- CommonWealth REIT was hit Thursday with a shareholder class action in Massachusetts federal court alleging stock dilution, entrenchment, failure to maintain adequate disclosure systems and elimination of shareholders' rights related to the board's alleged plan to wrest control of the company.

The suit claims that because the founders and trustees of the REIT are also the 100 percent owners of its manager, REIT Management & Research LLC, they have unresolvable conflicts of interest that prevent the board from protecting the company from the founders' self-dealing....
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