Block & Leviton LLP Launches an Investigation into Possible Securities Law Violations by Wells Timberland REIT

BOSTON, March 19, 2012 /PRNewswire/ -- The lawyers at Block & Leviton LLP, (blockesq.com), a Boston-based law firm representing investors nationwide, have commenced an investigation on behalf of investors of Wells Timberland REIT ("Wells Timberland" or the "Company") regarding potential violations of the federal securities laws by the Company and certain of its directors and corporate officers.

Beginning in 2006, Wells Timberland represented to investors that the Company would operate as a real estate investment trust, or "REIT," which would result in a number of benefits to investors, such as substantial dividend payments and a favorable taxation structure.  Wells Timberland further represented that it would have, or had, a diverse portfolio of real estate which would protect it from market down turns.

Contrary to Defendants' statements, Wells Timberland did not acquire its first property until October 2007.  Pursuant to the terms of the acquisition, the Company was prohibited from declaring dividends, which meant that it could not elect REIT status, nor could it acquire other properties.  Finally, in 2010, Wells Timberland declared REIT status, but has purchased no other properties, despite the Company's claims regarding diversification of its portfolio. 

As a result of Defendants' misconduct, Wells Timberland investors have not been paid dividends as promised, have been unable to seek redemption of their shares and have suffered a drop in share value of approximately 40%.  On November 22, 2011, FINRA issued a ruling that the Company, through its broker dealer arm, made 119 misrepresentations of fact regarding the sale of Wells Timberland shares.

If you have any information relevant to this investigation, or if you purchased or acquired Wells Timberland securities and have questions about your legal rights, please contact Whitney Street of Block & Leviton LLP at (617) 398-5630 or email her at [email protected].

Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.

This notice may constitute attorney advertising.

Contact: BLOCK & LEVITON LLP
Whitney Street, Esq.
[email protected]
(617) 389-5630

SOURCE Block & Leviton LLP

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