By Business Wire, October 21, 2013, 12:59:00 PM EDT
The law firms of Berger & Montague, P.C. and Kreindler & Kreindler LLP
have filed a class action Complaint in the Los Angeles County Superior
Court on behalf of investors in Rexford Industrial Fund III, LLC
("Rexford III"), alleging breach of fiduciary duty, violation of the
California Corporate Securities Laws of 1968, negligent
misrepresentation, and fraud on the part of the managers of Rexford III
in connection with a July 2013 rollup transaction where Units of Rexford
III were converted into shares or Units convertible into shares of
Rexford Industrial Realty, Inc. (NYSE:REXR).
Rexford III was a California Limited Liability Company formed in 2005
for the purpose of investing in Southern California industrial real
estate. From 2005 to 2013, it was managed by Rexford Industrial, LLC. In
2013, the principals of Rexford Industrial, LLC initiated a transaction
through which the Units of Rexford III would be converted into common
shares (or Units convertible into common shares) of a new publicly
traded Real Estate Investment Trust, Rexford Industrial Realty, Inc.
The Complaint alleges that the rollup transaction resulted in the
Rexford III investors losing over 95% of the value of their capital
investments, while the three principal officers of Rexford Industrial,
LLC received shares worth over $42 million. The Complaint further
alleges that Rexford Industrial, LLC and its three principals breached
their fiduciary duties to the Unit Holders of Rexford III by arranging
for a rollup transaction that resulted in the huge losses, grossly
undervalued Rexford III and unlawfully overvalued the interests of the
manager and affiliated entities. It further alleges that the same
defendants are also liable for fraud and negligent misrepresentation for
their role in drafting or disseminating disclosure documents through
which investors' consent to the rollup transaction was procured. As
alleged in the Complaint, those documents did not disclose either the
value of the consideration that Rexford III Unit Holders would receive,
or the amount by which the principals of Rexford Industrial, LLC would
be enriched, and they were otherwise materially misleading.
The attorneys listed below represent the plaintiffs in the class action
Sherrie R. Savett, Esq.
Arthur Stock, Esq.
Russell Paul, Esq.
& MONTAGUE, P.C.
1622 Locust Street
- and -
Gretchen M. Nelson, Esq.
Gabriel S. Barenfeld, Esq.
& KREINDLER LLP
707 Wilshire Boulevard, Suite 3600
Angeles, CA 90017
Telephone: (213) 622-6469
Berger & Montague, P.C., founded in 1970, is a pioneer in class action
litigation and have extensive expert in securities litigation and a long
track record of success in such cases. The firm's 60 attorneys
concentrate their practice in complex litigation, including securities
fraud, whistleblower and false claims actions and have recovered several
billion dollars for consumers and investors.
Kreindler & Kreindler LLP, based in Los Angeles, also concentrate their
practice in class action and multi-district litigation.
Source: Berger & Montague, P.C.