Northwynd Class Action
On December 7, 2018, Burnet, Duckworth, and Palmer LLP of Calgary, Alberta, filed a proposed class action lawsuit on behalf of all individuals who held Series A and B trust units in the Northwynd Real Estate Investment Trust (the "Northwynd REIT") at some point between June 3, 2014 and present (the "REIT Investors").
A "class action" is a legal method for one or more persons, called "representative plaintiffs," to start a lawsuit on behalf of themselves, and also on behalf of all others who fit into a defined class. Persons who fit into the defined class are automatically included in the class unless they opt out. In this way, a single person or small group of people can begin a class action on behalf of hundreds of people who are similarly affected and have the same legal cause of action. A court must approve the proposed representation and the proposed class of plaintiffs.
In this case, the proposed representative plaintiff is an individual who invested in the Northwynd REIT. He has brought this lawsuit against a number of defendants, including the trustees of the Northwynd REIT, various companies that held or managed property for the Northwynd REIT and its unit holders, and some individuals who ran those companies.
The lawsuit alleges, among other things:
- That the trustees breached their obligations to the REIT Investors;
- That the defendants made misrepresentations to the REIT Investors regarding various property and the financial status of the Northwynd REIT;
- That the defendants engaged in a conspiracy to wrongfully transfer property belonging to the Northwynd REIT to other parties;
- That the transfer of this property was done at less than fair market value or for no consideration; and
- The REIT Investors suffered harm as a result of the above alleged misconduct.
Among other remedies, the representative plaintiff is asking the Court for an order for damages on behalf of all REIT Investors, an order that the defendants disgorge all profits that they have made as a result of the wrongful transfers of properties, and an order declaring that any Northwynd REIT property still within the control of the Defendants is beneficially owned by the REIT Investors.
If you were an investor in the Northwynd REIT and would like more information on this proposed class action lawsuit, we encourage you to look at the documents that have been filed in this lawsuit and which are available through links on this webpage.
For more information, please contact Andrew Sunter, Robert Martz, or Alison Scott at Burnet, Duckworth & Palmer: