Moody National REIT Investor Lawsuits – Compensation & Help

Moody National REIT II – Investors May Have Right to Recover Losses

Investors in Moody National REIT II may have suffered devastating losses. Moody announced that its Board had decided to postpone the valuation of Moody National REIT II shares on August 5, 2021. In the past Moody declared its updated NAV at the end of the calendar year, but Moody has yet to update its NAV since December 2019. Moody’s refusal to estimate the value of its shares may be concerning to many investors. As of March 2021, shares of Moody National REIT traded on the secondary market for just $10.00 per share, representing a loss of approximately 60% when calculated based on the $25.00 per share most investors likely paid. In May 2020, a tender offer was made to purchase Moody National REIT II shares for $5 a share (which would represent an approximate loss of 80% for many investors). Given the Board’s refusal to estimate the share value, actual losses could be even greater.

While investors may have suffered major losses, there may be an avenue for recovery. Brokers and advisers who recommend investments to their client are obligated to recommend only suitable investments, conduct appropriate due diligence, and fairly and accurately describe the risks and features of the investments. Brokers and advisors who fail to meet their duties may be held legally liable for losses caused by their recommendations.

Moody National REIT II was a high risk investment. When it was first sold it had no operating history. Further, because Moody was a non-traded REIT, no public trading market existed for its shares and investors may not have had any meaningful options to sell their shares. Further, Moody National REIT II was a “blind pool” which meant that investors did not have an opportunity to actually evaluate future investments Moody would make before they purchased shares in the REIT. Moody has also disclosed that they “pay substantial fees and expenses” to their advisor and affiliates and the dealer managers. This included as much as 10% in sales commissions and dealer manager fees upfront. Between the commissions, fees, and offering expenses it is estimated that only approximately less than 86.5% of the investors’ capital actually went towards investments made by Moody National REIT II. Moody has admitted that Moody National REIT faced a variety of conflict of interest between it, its advisor, and other affiliates.

Retirees, elderly, conservative, and moderate risk investors may have been inappropriately sold or recommended Moody National REIT II. FINRA, the securities regulator, has long warned of the unique risks of non-conventional investments such as non-traded REITs. FINRA warned as early as 2003 that such products “may be suitable for recommendation to only a very narrow band of investors capable of evaluating and being financially able to bear those risks.”

If your broker or advisor recommended you invest in moody National REIT II or any other similar products, please call our firm for a free and confidential evaluation. The Securities and Business Litigation team at Levin, Papantonio, Rafferty, Proctor, Buchanan, O’Brien, Barr & Mougey, P.A. has handled claims involving non-traded REIT products and can work to help you recover your losses. Our law firm was founded in 1955, we have more than 50 attorneys and 150 support staff. We charge you attorney’s fees only if we recover for you.

 
 
Why Choose Our Law Firm

Our law firm has been in existence for more than 65 years, and is recognized as one of the preeminent law firms in the United States. Based on law firm verdicts and settlements exceeding $4 billion, our securities fraud lawyers are committed to seeking justice for the victims of investment fraud and misconduct.

Led by attorney Peter Mougey, the past President of the national securities bar PIABA, our Securities and Business Tort Department has represented more than 1,500 investment fraud victims across the country in state and federal court and securities industry arbitration.

We are the founder of Mass Torts Made Perfect. This is a national conference attended by 1,500 lawyers each year where we teach how to successfully handle lawsuits against the largest companies in the world. For more information, please visit our About Us section.

in Business 65 years * $4 Billion in Verdicts & Settlements * Best Law Firms: U.S. News & World Reports * Trial Lawyers Hall of Fame * SuperLawyers
 
Our Fees & Costs

Our lawyers provide free confidential case evaluations, and we never charge any fees or costs unless you first recover.

The contingency fee we charge ranges from 20% to 40%. The amount we charge is based on how much we recover for you. To review a summary of our fees and costs, click Fees & Costs.

 
Free Case Evaluation

To contact us for a free confidential consult, you can call us at (800) 277-1193. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation.

 
 

What Our Clients Say

Client Testimonials

Below are some of the emails and letters that our clients have sent us.

At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
My husband and I were very pleased with the work that Peter and his team provided. He was very knowledgeable of the circumstances of our case and kept us informed throughout the process. He is extremely qualified and worked diligently on our behalf. We are positive that this case would not have been resolved in our favor had it not been for Peter's expertise and his passion. He definitely cares about his clients and we sincerely appreciate his efforts. Rachel C.
FRS is a governmental body. FRS retained the services of Peter Mougey of the LP law firm in a multimillion dollar lawsuit involving extremely complex issues. Mr. Mougey quickly mastered the issues and gave advice that was vital in bringing about a successful resolution. Two of the most important features of Mr. Mougey’s representation was his understanding of government and his ability to communicate complicated legal concepts to a 10-member board of trustees in language that was easily understood by all. I did not know Mr. Mougey before FRS retained him and, fortunately, have not experienced circumstances where the system would need his services again. However, if needed, I would have no hesitation in retaining his services again. Please let me know if you need any additional information or assistance. Steven S.
Edison's famous adage can't ever be ignored of course: 1 part inspiration and 99 parts perspiration. However the two attitudes must be present indissolubly--both are essential--if results are to be obtained. Peter Mougey’s group is aware of such a requirement, they work very hard at the latter, and the former comes easily to them, a rare combination anywhere to be found indeed. Raphael B.
I would like to express my sincere gratitude to Peter Mougey and your entire team on behalf of my family for the amazing job done during your representation. From day one I received kindness, rapid responses to all of my questions, with polite and patient encounters with all of your staff assistants. You are the best- and I will be eternally grateful to you and your entire team. Michelle E.