He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. This meant that the fund had not had any net income and did not own any properties. The White Law Group is investigating potential securities fraud claims against the broker dealers that improperly sold high risk non-traded REITs, like HIT REIT to investors. If you were sold GPB products or other illiquid private placements from KALOS CAPITAL and/or their former brokers , contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment . Non-traded REITs are risky investments, but they may offer high commissions, so that brokers may have an incentive to get clients to buy shares. According to filings in the bankruptcy case, each share of Hospitality Investors Trust common stock will be canceled and exchanged for a right to receive contingent cash payments (CVR). Real estate investment trusts (REITs) arecomplex and inherently risky products. In May 2021, The Hospitality Investors Trust filed for Chapter 11 bankruptcy protection, which will almost certainly result in investors losing all or most of their principal. He worked in five different areas at Bradesco Bank, ending his activities at the FX Trading Desk. This may be years after you have made your investment. 2015 by The White Law Group, LLC All rights reserved. If we take your case under a contingency fee arrangement, you wont owe our firm any legal fees unless we are able to recover money for you. Shares of the Healthcare Trust REIT were originally priced at $25 per share. Even worse, HIT REIT is now in bankruptcy. Please. Written by The White Law Group August 25, 2021 Epiq 11 It seems that many brokers sold this to investors despite it not being suitable for them. The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. Usually that is not the case when dealing with legal matters but you guys (gals) rock., Ive always found them to be extraordinary counsel in terms of their preparation and their professionalism.. The REIT reportedly acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); We are a nationwide litigation law firm that represents individuals and entities who have been the victims of negligence, fraud or the misconduct of powerful interests. The Securities and Exchange Commission (SEC) states that non-traded REITs have particular risks such as lack of liquidity, share value transparency, distribution of funds, and conflicts of interest. Hospitality Investors Trust REIT was formed in July 2013 by AR Capital, a now-infamous company in the non-traded REIT space that has sponsored over $20 billion in deals. We do not charge any fees or costs unless you first recover. Many debts under the plan are to be satisfied in full, including those of general unsecured creditors. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. Hospital Investors Trust has faced a steady decline in its price in the last few years which has been further exacerbated on account of the impact of Covid-19 from March 2020 onwards. 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. Investors are unlikely to recover much of the money they invested. A broker also has an ethical obligation to consider an investors risk tolerance, age, investment experience, and net worth when determining whether a certain investment is suitable for the client. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. An investments suitability for a particular client is based on a number of considerations, including the clients age, investment experience, risk tolerance, need for liquidity, and other factors. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. Read more about what judges say about us. You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. The contingency fee we charge ranges from 20% to 40%. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. 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. Healthcare Trust Inc. - HTI - Shareholder Lawsuits - The White Law As of today, we have completed approximately one-half of our PIP program; we do not expect to reinstate distributions prior to the completion of all remaining PIPs, which is likely to continue for at least the next two years. Unfortunately for investors, this sales price would represent a significant loss on their capital investment, as the original purchase price was $25.00 per share. 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. Alternative investments such as Hospitality Investors Trust Inc. are illiquid. You may have a claim. Eileen is involved in the firms securities practice and has over a decade of experience in the legal world. Attorney Advertising. About Hospitality Investors Trust, Inc. 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. If you have an ad-blocker enabled you may be blocked from proceeding. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. If you invested in HIT REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. 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. Please disable your ad-blocker and refresh. They are illiquid investments, which means that if you need to sell an asset to raise money quickly, you may not be able to do so with shares of a non-traded REIT. Moreover, it can be difficult to determine the value of a share of a non-traded REIT. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. 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. The REIT price continued to decrease over the course of these announcements. These increases were mainly a result . Bankrupt Eagle Hospitality Says Two Part Owners Wrongly Took - WSJ The trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products. TRevPOB was $52.60 in FY 2022, compared to $45.86 in FY 2021, a 14.7% increase. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. HIT REIT Hospitality Investors Trust Losses update April 8, 2021 Possible bankruptcy Have you suffered losses investing (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. These distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment. What is happening with Hospitality Investors Trust? We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Real estate investment trusts (REITs) are. Hotel REIT Files Chapter 11 Plan to Hand Itself Over to Brookfield - WSJ Brokers, financial advisors, and brokerage firms who recommended HIT REIT knew or should have known of the risks and issues; brokers should never have sold HIT REIT to investors. 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. 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. A non-traded REIT seeks to restructure $1.3 billion in unsecured debt, What Strong Gold Says About The Weak Dollar: An In-Depth Analysis On Gold Prices, Investors Watch For Earnings, Budget Battle and Recession Signs (Weekly Cheat Sheet), Yield Curve Signals Recession, Bud Loses $5B & Gold Makes New Highs (Weekly Cheat Sheet). Investor Alert: Hospitality Trust Investors Bankruptcy Hospitality Investors Trust is negotiating a deal that would give Brookfield financial control over its 100 hotels as part of a possible Chapter 11 filing, Bloomberg News reported. If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. As a result, for a significant time period you may be unable to assess the value of your non-traded REIT investment and its volatility.. Federal judge in our Chase lawsuit (resulting in $100 million settlement): They fought tooth and nail, down to the wire to achieve the best settlement that they could under the circumstances.. Are you concerned about Hospitality Investors Trust Inc. (HIT REIT) losses? 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. An investor in Hospitality Investors Trust, a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, has filed a lawsuit claiming gross abuse of trust by certain company executives and directors, the former property managers and advisor, former sponsor AR Global, and AR Global's senior executives. 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