A stockholder in The Parking REIT has filed class action lawsuit against the company in Nevada federal court. The lawsuit is related to the proxy statements MVP REIT II filed with the SEC to get shareholder approval to merge with MVP REIT, which created The Parking REIT.
The company is non-traded, but has filed a prospectus with the SEC to raise up to $100 million in an initial public offering and list on the NASDAQ with the symbol PARK.
According to an article on thediwire.com, the complaint alleges that “the company disseminated proxy statements that contained false and misleading statements, that the director defendants breached their fiduciary duties, and the proposed internalization transaction will unjustly enrich certain directors and officers of the company.”
The lawsuit seeks a trial, monetary damages, and a halting of the company’s listing on the NASDAQ.
The Parking REIT is a real estate investment trust, which is a company that pools the money of many investors to buy real estate and pays at least 90% of its income to its investors. The Parking REIT invests in parking lots and parking garages, and has a portfolio that includes 42 parking facilities and 11,000 spaces.
In March 2018, the company suspended cash distributions and stock dividends. There are also numerous allegations against the Parking REIT’s CEO, Michael Shustek, including conflicts of interest and using his role to effect transactions that have benefitted himself at the expense of investors, according to a Securities Litigation & Consulting Group report.
Silver Law Group is investigating the Parking REIT. If you have invested in the MVP REIT, the MVP REIT II, and/or the Parking REIT, you may have a claim against the broker or brokerage firm that sold it to you.
Contact our firm today to see how we may be able to recover your losses. We take most cases on a contingency fee basis, which means there is no charge to hire us.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.