Thomas Kearns Quoted in the Real Deal on the Real Estate Crowdfunding Implosion

Olshan Real Estate partner Thomas Kearns was recently quoted in an article in The Real Deal (subscription required) on the recent litigation involving The Prodigy Network, a real estate crowdfunding/investment company. Prodigy’s CEO, Rodrigo Niño, died last year. The article reported that investors in Prodigy crowdfunding deals brought lawsuits against the company. The article discussed the issues that crowdfunded investors may have when investments go bad or the sponsoring company has setbacks. Mr. Kearns is quoted opining  on the matter: “Investors in crowdfunding  deals are generally quite exposed, because managers often have the right to sell investment buildings without getting approval first.” He continued “And if there’s not enough money to pay the investors off, too bad.”