NEW YORK, Nov. 11, 2020 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of purchasers of interests in Cardone Equity Fund V, LLC (“Fund V”) and Cardone Equity Fund VI, LLC (“Fund VI”). Investors have until November 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
Cardone Capital provides real estate investment opportunities to the so-called “everyday investor” through real estate crowdfunding. According to Cardone Capital’s website, Cardone Capital “finds the deals, negotiates the purchase and financing, and closes the deal,” generating rental payments from creditworthy tenants to pay monthly cash distributions to investors.
The Cardone Capital class action lawsuit alleges that, in addition to certain “test the waters” communications, defendants made materially false and misleading statements regarding: (1) whether investors would obtain a 15% internal rate of return on their investments; (2) the amounts of monthly distributions they would receive; and (3) investors’ debt obligations. The class action lawsuit further alleges that defendants made materially false and misleading statements in the offering documents and omitted to state material facts relating to how the acquisition of properties to be owned by Fund V and Fund VI would be financed and the interest Cardone Capital would charge the funds for loaning “the aggregate principal balance” to acquire those properties. Cardone Capital also represented to investors that it would pay monthly distributions based on cash flows from operations when, in fact, Cardone Capital suspended monthly distributions in April 2020.
If you purchased interests in Cardone Equity Fund V, LLC and Cardone Equity Fund VI, LLC, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.