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Investigations on Behalf of Cole Credit Property Trust III Shareholders

Securities attorneys are currently investigating claims on behalf of Cole Credit Property Trust III investors. Cole Credit III is a non-traded real estate investment trust, or REIT. A press release issued on March 21, 2013 announced that Cole Credit III’s Board of Directors Special Committee affirmed that it was committed to pursuing a New York Stock Exchange listing and the acquisition of Cole Holdings Corp.

Lawyers are reviewing whether shareholders are paying fair or excessive value in the Cole Holdings Corp. acquisition, in addition to whether or not the transaction itself may c0nstitute a breach of fiduciary duty. Reportedly, the transaction indicated that Chris Cole and Cole Holdings management would receive cash and stock amounting to $127 million in the transaction. Since the announcement of the acquisition, shareholders have filed at least three lawsuits.

Meanwhile, InvestmentNews reported on April 11, 2013 that almost one week after the acquisition of Cole Holdings closed for 10.7 million shares and $20 million in cash, Chief Executive Nicholas Schorsch and American Realty Capital Properties Inc. had withdrawn their bid to acquire Cole Credit III. Schorsch stated in an interview, “We made a good faith offer, $9.7 billion.” After the $12 per share offering was rejected by Cole management, ARCP increased the bid to $12.50 per share but, according to Schorsch, Cole Credit III never negotiated seriously.

In a statement, ARCP stated that the reason it withdrew the proposal was “in order to safeguard its stockholders from any possible economic, legal, reputational or other risks, including the numerous pending class action and derivative lawsuits filed.” Shareholders apparently approved of ARCP’s decision, as their stock price was driven up almost 3 percent following the announcement. 

If you are a Cole Credit Property Trust III investor and wish to find out more about your legal rights and options, contact an investment fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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