The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. Illiquid Investment Investors may have Recovery Options. The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. You should consult an attorney for individual advice regarding your own situation. In materials provided to shareholders, the company reportedly attributed the decline in part to higher exit capitalization rates due to an increase in the interest rate environment since the 2016 valuation., In May 2019, HITs board announced that it the REITs NAV/share was $9.21 as of December 31, 2018, an approximate 33.6 percent decrease compared to the previous $13.87 per share NAV, as of December 31, 2017, according to The DI Wire. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim. Now, Hospitality Investors Trust REIT investors have suffered significant losses. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. Adam Corwin: Complaint Against MML Advisor Alleges Fraud, James Warring: EagleStone Wealth Advisor Faces $4.5mm Complaint, Chuck Timmerman: $400K Complaint Against US Bancorp Advisor, Adam Brown: WestPark Advisor Faces $351K Investor Complaint. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. On May 19, 2021, Hospitality Investors Trust Inc., a non-traded REIT that owns a portfolio of hotel properties, filed for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion . Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. Thus, the securities law firm of Peiffer Wolf has begun another investigation into any and all brokers and advisors who recommended NorthStar Healthcare REIT to investors. The REITs bankruptcy plan involved the cancellation of common stock shares in exchange for shareholders right to receive nontransferable contingent cash payments not to exceed $6/share. The contingency fee we charge ranges from 20% to 40%. It can be extremely difficult to valuate or sell a non-traded REIT, especially as these shares are not listed on a national securities exchange. While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. The White Law Group announces the filing of FINRA Lawsuit involving High Risk Non-Traded REITs and BDCs The White Law Group announces the Have you suffered investment losses in a Hospitality (Non-traded) REIT? She received her law degree from American University in 2005. Investment Losses? Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. What is happening with Hospitality Investors Trust? They have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. The White Law Group continues to HIT REIT Files for Chapter 11 Bankruptcy Protection The White Law Group continues to investigate potential securities claims involving Blog, Current Investigations, Securities Fraud. Indeed, the prospectus reiterates, You should purchase these securities only if you can afford a complete loss of your investment., HITs board of directors reduced the REITs net asset valueits total assets minus its total liabilitiesseveral times in recent years. Have you suffered investment losses in a Hospitality (Non-traded) REIT? The White Law Group continues to Hospitality Investors Trust, Inc. (HIT REIT) 2021 Lawsuit *UPDATED* Did your broker recommend an investment in Hospitality Investors Trust Blog, Current Investigations, Securities Fraud. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. The White Law Group may be able to help you recover your financial losses by filing a. arbitration claim against the brokerage firm that sold you the investment. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. Epiq11.com builds on a library of cases spanning two decades - the largest repository of such data in the industry outside of the federal court system. Shares traded on CTT Auctions, a secondary market for non-traded REITs in September for $0.66 per share. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. If so, the (312) 238-9650 | Fax (312) 238-8950 | (888) 637-5510 | 125 S. Wacker Drive, Suite 300, Chicago, Illinois 60606The information you obtain at this site is not, nor is it intended to be, legal advice. (504) 523-2434 The REIT primarily owns Hilton, Marriott and Hyatt brands. Investment Losses? Read more about what judges say about us. Our advisor has no operating history and is a newly formed entity which has no experience operating a public company., There is no guarantee that distributions will be paid. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. The White Law Group may be able to help you recover your financial losses by filing aFINRAarbitration claim against the brokerage firm that sold you the investment. In January of 2017, the company suspended its distributions and announced that it did not expect to pay distributions for the rest of the year. High inflation and the cost . If you invested in a Healthcare Trust Inc. (ARC Healthcare Trust II) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation. This may provide some brokers with enough incentive to make unsuitable investment recommendations. According to the filings, each share of Hospitality Investors Trust common stock outstanding is cancelled and exchanged for a right to receive contingent cash payments (CVR). Get a free and confidential consultation. Gibbs Law Group attorneys have fought some of the most complex cases brought under federal and state laws nationwide, and have been recognized with numerous awards and honors for their accomplishments, includingTop 100 Super Lawyers in Northern California,Top Plaintiff Lawyers in California,The Best Lawyers in America, and ratedAV Preeminent(among the highest class of attorneys for professional ethics and legal skills). Last December we told you that Hospitality Investors Trust Inc. (HIT REIT), a publicly registered non-traded REIT, amended its limited partnership agreement with its investment partner, Brookfield Strategic Real Estate Partners II Hospitality REIT II LLC. Soon after, in May 2021, a chapter 11 bankruptcy protection was filed by HIT. On May 19, 2021, Hospitality Investors Trust Inc., a non-traded REIT that owns a portfolio of hotel properties, filed for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021, Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. To review a summary of our fees and costs, click Fees & Costs. For more information on The White Law Group, visit. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. Bankrupt hotel chain Eagle Hospitality Real Estate Investment Trust alleged in a court filing that two of its big investors received $2.4 million in federal coronavirus aid on behalf of its Queen . Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. If you invested in Hospitality Investors Trust REIT you were recently advised that the company filed for Chapter 11 bankruptcy on May 19, 2021, and you are now facing the loss of a significant portion of your investment. Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. HIT REIT Hospitality Investors Trust Losses update April 8, 2021 Possible bankruptcy Have you suffered losses investing Securities Investigation Hospitality Investors Trust Inc. Are you concerned about Hospitality Investors Trust Inc. losses? REITs like this are only suitable for savvy and wealthy investors, because these complex investment products are often risky and highly illiquid, meaning investors may be stuck and not able to access their money. and will not be transferable, except in limited instances such as the death of the holder. Please provide any additional information about your inquiry. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. Kahane is a director at Business Development Corporation of America, American Reality New York Recovery REIT, Inc., and several other American Reality companies. According to news reports, on May 13, the REIT's executive officers and employees received $2.5 million in retention bonuses. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. Combined with other smaller fees and expenses, approximately 86% of an investors investment was actually being used for instruments by the Trust. HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. If you or a loved one have suffered investment losses on your investment in Hospitality Investors Trust, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation. Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. If you invested in Hospitality Investors Trust REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. NYC, NY, USA, June 3, 2021 / EINPresswire.com / -- Last week Hospitality Investors Trust and its operating partnership filed petitions for relief under Chapter 11 of the US Bankruptcy Code . Hospitality Investors Trust, Inc. (HIT REIT) is a real estate investment trust (REIT) which owns a diversified portfolio of strategically-located hotel properties throughout the United States within the select service market of the hospitality sector. Distributions can be paid from any source, including unlimited amounts from offering proceeds and borrowings. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. Central Trade & Transfer announced a selling price of 46 cents per HIT share in March 2021. The updated NAV has decreased 33.6 percent since the previous valuation of $13.87 per share NAV in December 31, 2017. The White Law Group is investigating potential securities fraud claims involving broker-dealers improper recommendation that investors purchase high-risk non-traded REIT investments, like Hospitality Investors Trust(aka HIT REIT). Hospitality Investors Trust is a publicly registered, non-traded real estate investment trust whose initial offering became effective in 2014 and which declared bankruptcy in 2021. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). Unfortunately, it appears that the shareholders and investors who bought the Hospitality Investors Trust may be left with little or nothing after the restructuring. This field is for validation purposes and should be left unchanged. The bankruptcy could leave investors who were sold shares in HIT with no real recovery of their investments, and the bankruptcy will undoubtedly leave many investors with substantial losses. Investors looking to sell alternative investments often have difficulty finding a buyer, and can suffer significant losses on the sale. NEW YORK, June 11, 2021 (GLOBE NEWSWIRE) -- National investor fraud law firm, KlaymanToskes ("KT"), announces an investigation on behalf of investors in Hospitality Investors Trust ("HIT . Moreover, we will do our best to keep you updated and manage expectations along the way. The lawsuit, which has been filed by class-action law firm Hagens Berman, contests that Choice Hotels International, Hilton, Hyatt Hotels . According to Central Trade & Transfer, a secondary market for non-traded REITs, shares of HIT REIT sold on March 31, 2021 for just $0.46 per share. Investors are unlikely to recover much of the money they invested. All copies must include this copyright statement. The risks materialized and HIT REIT filed for bankruptcy in May 2021. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? Hospitality Investors Trust no longer has sufficient cash fund its obligations and Brookfield is the only likely provider of additional liquidity, according to its 2020 annual report. The British-born chef reportedly flew home early from Rome, leaving his wife Lauren Fried, and their two young children, Alfie, five, and Isla, two, in the Eternal City. Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. Contact us now for a free consultation! the Company and its operating partnership, Hospitality Investors Trust Operating Partnership, L.P., a Delaware limited partnership (the "OP"), entered into a Restructuring Support Agreement (as may be subsequently amended or modified from time to time, the "RSA") with the Supporting Stockholder; WHEREAS, on May 19, 2021 This means that investors could have suffered over 95% losses on their investment, or even worse. A REIT is a real estate investment trust, that is, a group that owns income-producing real estate. You should consult an attorney for individual advice regarding your own situation. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. The firm has successfully litigated against some of the largest companies in the United States, and has recovered more than a billion dollars on clients behalf. In fact, at first, it could not even point to the properties it intended to acquire or invest in, which means that brokers, advisors, and investors would have difficulty evaluating the REIT.