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. Fill out this form for a FREE and prompt case evaluation. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? More than 12 hospitality venues have shut each day in Britain over the past year as they struggle with higher costs such as soaring energy prices, according to figures. All copies must include this copyright statement. Even when a sale does transpire, the high fees commissions often diminish the investors total return. Prior Results do not guarantee a similar outcome. That figure represents a substantial decrease from the REITs original share price of $25/share. Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. REIT Investors have won several securities litigations involving financial institutions with the intention of recovering from their securities losses. To learn more about The White Law Group visit www.whitesecuritieslaw.com. Specifically, Peiffer Wolf is investigating any and all brokers and advisors who recommended ARC HIT REIT and any non-traded REITs to investors. Were investigating whether brokers or financial advisors recommended this REIT to their clients, even if it was not suitable for them. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Investors in this real estate fund, formerly known as American Realty Capital Hospitality Trust, have seen their share values plummet, and a lawsuit, filed recently in federal court, charges malfeasance and seeks damages. the real estate hospitality sector; as of September 30, 2017 the Company had acquired or had an interest in 148 hotel properties. 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). Carlson Law represents investors involved in claims against financial advisors and investment firms throughout the United States. ContactPeiffer Wolf today by filling out aContact Formon our website or by calling585-310-5140to schedule aFREE Case Evaluation. Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. Hospitality Investors Trust, Inc., formerly known as ARC Hospitality Trust Inc., ("HIT REIT") is a publicly registered non-traded real estate investment trust which owns a diversified portfolio of "strategically-located hotel properties throughout North America within the select service and full-service markets of the hospitality sector," The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. According to filings, each share of Hospitality Investors Trust common stock outstanding will be cancelled and exchanged for a right to receive contingent cash payments (CVR). Shares of the Healthcare Trust REIT were originally priced at $25 per share. Alternative investments such as Hospitality Investors Trust Inc. are illiquid. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510. Our law firm has been in existence for more than 65 years, and is recognized as one of the preeminent law firms in the United States. Similar to American Finance Trust, Inc. (AFIN), VEREIT, and ARC NYC REIT, HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. Further, the fund had not even identified any properties to acquire with the offering proceeds. The maximum amount of payments made per CVR will not exceed. Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. 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. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. Read more about what judges say about us. Unfortunately, it appears that the shareholders and investors who bought the Hospitality Investors Trust may be left with little or nothing after the restructuring. The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. The REIT explained in the filings that due to the impact of the coronavirus global pandemic on its business, the company expects it will no longer have sufficient cash on hand to continue to pay its current obligations during the first half of 2021. Please provide any additional information about your inquiry. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. HIT is a non-traded REIT. 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? 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.. The company primarily operates its hotels under a franchise or license agreement with various brands. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. As result, there have multiple lawsuits from Hospitality Investors. This field is for validation purposes and should be left unchanged. 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. Hospitality Investors Trust to be acquired by property giant through bankruptcy, Photo illustration of Brookfield Property Partners Brian Kingston (Brookfield, iStock). 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. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Joe Peiffer, Responsible Attorney. 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 . According to an April report by The DI Wire, the REITs board lowered the NAV to $8.35/share as of December 31, 2019. If you invested in NorthStar Healthcare REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 or by filling out a Contact Form on this website. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. Six of the hospitality industry's largest hotel companies are named in a new class-action lawsuit, which claims to have uncovered an antitrust scheme to reduce competition and raise consumer prices. 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. 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. (504) 523-2434 These REITs include: If you invested in any of these REITs, or others, we may be able to help. If so, you may be able to participate in a lawsuit. Typically, we represent clients on contingency fee agreements. According to Vanguard's lawsuit and as reported by Joseph DiStefano in a philly.com article, Schorsch and his associates overexaggerated earnings in reports, "convincing Vanguard and other professional investors to buy the stock, after certifying the company had solid financial controls and honest financial reporting." Hidden Hidden web source Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Contact us today for a FREE consultation. Healthcare Trust REIT Lawsuit Investigation AR Global's Healthcare Trust REIT decreases NAV per share; Investors lose thousands Our firm is investigating AR Global's Healthcare Trust, Inc. on behalf of REIT investors. Real estate investment trusts (REITs) arecomplex and inherently risky products. Shares were originally sold for $25.00 per share. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. This may provide some brokers with enough incentive to make unsuitable investment recommendations. 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 Hospitality Investors Trust Inc., which has stakes in 100 U.S. hotels, filed for bankruptcy protection with a prearranged plan that would hand the company over to Brookfield Asset Management Inc . 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. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. About Hospitality Investors Trust, Inc. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. 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. Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. Hospitality Investors Trust, Inc. is a real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout North America within the select service markets of the hospitality sector. 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. These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. In June 2017, for instance, HITs NAV per share was estimated at $13.20 as of March 30th, 2017, a decline of approximately 38.6 percent year-over-year from the previous NAV of $21.48/share, according to The DI Wire. Our firms investigation has revealed that some brokers and financial advisors allegedly sold the HIT REIT as a conservative, safe, asset backed, or moderate risk investment. Fill out the form on this page and let us know what your experience was. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients. If you invested in HIT REIT and have lost part of your investment, not received your distributions, or remain stuck in the uncertain REIT, you may be eligible for monetary recovery. HIT was sold for $25 per share originally. Speak with a lawyer today to learn more. Hospitality Investors Trust, Inc. is a publicly registered non-traded real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout . Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. This bankruptcy may be bad news for investors who were sold shares in HIT. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. Contact us now for a free consultation! Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. How long will it take to resolve my lawsuit? These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. 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. 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 . We have a national team of attorneys and staff who look forward to speaking with you. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. The estimated current value of a share based on limited secondary trading values is less than $1, and HIT has now filed for bankruptcy. 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. Have you suffered investment losses in a Hospitality (Non-traded) REIT? Many investors are not fully aware of the problems and risks associated with these investments before purchasing them. On May 19, 2021, the New York-based Hospitality Investors Trust filed for Chapter 11 bankruptcy to attempt to restructure its $1.3 billion debt. Scott is admitted to practice in New York and Florida and the firms FINRA arbitration attorneys represents investors nationwide. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. Harion has an intensive course in Business Supplementary in Kaplan (Canada). Both loans bear interest at 15 percent per year. If your financial advisor did not fully and/or accurately disclose the risks associated with an investment in HIT, including the products illiquidity and its stakeholders conflicts of interests, you may be entitled to a recovery. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser.