Galbut Beabeau, P.C. attorney Grant H. Frazier co-authored the law journal article “A Sleight of Hand: Why Non-Traded Real Estate Investment Trusts Are Becoming an Increasingly Frequent Subject of Securities Litigation and Arbitration,” which was recently published in the Summer 2020 Issue of the Corporate and Business Law Journal, housed at ASU's Sandra Day O’Connor College of Law.
In the article, Grant and his co-author Sarah Deutsch – a Shareholder at Tiffany & Bosco, P.A. – address how, despite legislative and regulatory efforts to mitigate the risks posed by sub-prime investments of the kind that lead to the 2008 Great Recession (e.g., mortgage-backed securities and collateralized debt obligations), similarly packaged, marketed, and operated investment vehicles now pose comparable risks for investors on an individual level and for the U.S. financial system in the aggregate. Specifically, the article focuses on non-traded real estate investment trusts ("REITs") as a particularly risky investment class.
With many financial experts having predicted an economic downturn in 2020 prior to the COVID-19 Pandemic, and COVID-19’s especially disastrous effects on the retail space, the exposure created by high-risk, illiquid non-traded REITs and other similar investments are likely to be realized in the form of significant financial losses. The article explains the nature of non-traded REITs; the risk characteristics of these investments that increase the likelihood of losses and related initiation of securities litigation or arbitration; the potential defendants in these securities actions; and claims for relief most likely to be asserted.
Grant is a prolific author, with scholarly works published by Harvard, Georgetown, Arizona State University, and UC Hastings law schools, as well as by Dartmouth and Pomona Colleges. His scholarship addresses a range of novel legal and ethical approaches to topics including the imposition of employer-sponsored wellness programs, serum-based tests to objectively diagnose traumatic brain injury, CRISPR-Cas9 gene editing, international economic espionage, Arizona's Regulatory Sandbox, Arizona’s Economic Loss Doctrine, and the Senate’s role in the confirmation process for U.S. Supreme Court nominees.
Read his collected works here.