KBS Hid Poor Health Of $1.7B REIT, Investors Say

Law360, New York (May 9, 2012, 8:05 PM EDT) -- A pair of Florida investors on Tuesday hit KBS Real Estate Investment Trust Inc. with a proposed class action, accusing the REIT of misrepresenting the risk level and performance of its flailing $1.7 billion KBS REIT I fund.

Lead plaintiffs George and Marianne Stewart say they invested $123,000 in KBS REIT I, based on KBS’ representations that the fund was a conservative bet, but discovered that the fund’s managers squandered shareholders’ money by purchasing underperforming real estate and paying out inflated distributions.

“[KBS] misrepresented the investment...
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Case Information

Case Title

Stewart et al v. KBS Real Estate Investment Trust, Inc. et al

Case Number



Florida Middle

Nature of Suit

Stockholders Suits


John E. Steele

Date Filed

May 7, 2012

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