Problem
A REIT engaged Vcheck for due diligence on a prominent real estate developer. The investigation confirmed the Subject’s substantial holdings but revealed a moderate litigation history, UCC filings, and multiple legal disputes. While common in real estate, these issues raised moderate red flags, prompting the firm to enroll the Subject in Vcheck’s Continuous Monitoring Platform to continuously screen for emerging risks.
Solution
Within one month of enrollment, Vcheck Monitoring surfaced and consolidated a high-risk alert identifying new adverse media coverage.
The alert indicated that the Subject’s company was sued by a broker for contract disputes and breaches, resulting in a significant commission loss for the broker. Notably, allegations in the newly filed suit were more significant than any litigation that had occurred before the initial check, highlighting serious ongoing legal risks tied to the Subject’s business practices.
Impact
Vcheck’s Monitoring Platform flagged a lawsuit alleging improper practices, confirming the Subject’s complex litigation history and reputational risk identified in Vcheck’s initial investigation. The real-time alert system promptly delivered this information, enabling swift action. By leveraging continuous risk monitoring and traditional due diligence, the real estate investment firm gained real-time visibility into an emerging risk associated with their potential business partner.