Investors who have been sold the HIT REIT unsuitably and have lost money, as a result, could seek recovery through the FINRA (Financial Industry Regulatory Authority) arbitration process. According to the REITs website, the company owns a diversified portfolio of strategically-located hotel properties throughout the United States within the select service market of the hospitality sector. Shares in the REIT were originally sold at a price of $25/share, but their value declined in subsequent years. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. 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. 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. Healthcare Trust Inc. - HTI - Shareholder Lawsuits - The White Law Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. Thus, investors and advisors were unable to evaluate the investment portfolio prior to the initial investment. Shares were originally sold for $25.00 per share. Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy Hospitality Investors Trust REIT Shares Crash. Investors Staring at a Ashford Hospitality Trust gave up a portfolio of 13 hotels as it struggled to stem losses and fumbled with forbearance agreements in an effort to avoid defaults. Specifically, Peiffer Wolf is investigating any and all brokers and advisors who recommended ARC HIT REIT and any non-traded REITs to investors. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. 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. Investors looking to sell alternative investments often have difficulty finding a buyer, and can suffer significant losses on the sale. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients. 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. Carlson Law represents investors involved in claims against financial advisors and investment firms throughout the United States. California-based REIT Sunstone Hotel Investors gave control of the Hilton Times Square to its special servicer, Torchlight Investors, in December. To review a summary of our fees and costs, click Fees & Costs. The amount we charge is based on how much we recover for you. All Rights Reserved. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). 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. These increases were mainly a result . Hospitality Investors Trust Bankruptcy: Investors May Have Options For example, several executives in the trust have financial interests in other REITs and other non-traded business development companies. If so, you may be able to participate in a lawsuit. 4:25 pm Brokers who failed to conduct adequate due diligence or did not appropriately disclose the risk of HIT to their clients may be liable for the losses suffered as a result of their failure. Prior Results do not guarantee a similar outcome. 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. Hospitality Investors Trust - Overview, News & Competitors - ZoomInfo Previously known as American Realty Capital Hospitality Trust, it came under fire for a 2017 investment deal that gave Brookfield substantial control over the company and led Hospitality Investors to suspend stockholder distributions. Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. 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 . (504) 608-1465. The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. Get a free and confidential consultation. Hospitality Investors Trust REIT Investigation - Class Actions Lawsuits 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. 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 HIT REIT made adjustments to bonuses for key executives, as well. 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. Harion has an intensive course in Business Supplementary in Kaplan (Canada). Get free professional market insights and stock/ETF reports that contain actionable opportunities written by a former financial advisor and Capitalist who has been investing in the markets for 20+ years. 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. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment., We established the initial offering price on an arbitrary basis; as a result, the actual value of your investment may be substantially less than what you pay., There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, property manager, our sub-property manager, our sponsor, our dealer manager and our and their respective affiliates, which could result in decisions that are not in the best interests of our stockholders., We are obligated to pay fees to our advisor, which could be substantial and may result in our advisor recommending riskier investments., Taken together, these factors make Hospitality Investors Trust a highly risky investment that likely was not suitable for inexperience and/or conservative investors, especially those with liquidity needs and/or those who cannot afford to lose their principal. Speak with a lawyer today to learn more. Further, in February of 2019 the Board of Directors announced that it suspended the Companys Share Repurchase Program. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. 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. and will not be transferable, except in limited instances such as the death of the holder. The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. 1519 Robert C. Blakes Sr Dr, 1st Floor We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. Scott is admitted to practice in New York and Florida and the firms FINRA arbitration attorneys represents investors nationwide. HIT was originally a blind pool offering, further making the investment highly speculative. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. This is a national conference attended by 1,500 lawyers each year where we teach how to successfully handle lawsuits against the largest companies in the world. The asset management company holds all $441 million worth of its preferred equity. 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. Hospitality Investors Trust REIT and its operating partnership filed petitions for bankruptcy and investors are filing lawsuits to recover losses. 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 . If you are interested in a free and confidential case review, contact us at (800) 277-1193. Our lawyers provide free confidential case evaluations, and we never charge any fees or costs unless you first recover. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. 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. We have a national team of attorneys and staff who look forward to speaking with you. Schorsch REIT Disaster Lawsuit | Brokerwatch | Peiffer Wolf Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinoisand Seattle, Washington. Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. For more information, please visit our About Us section. As result, there have multiple lawsuits from Hospitality 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. Investment Losses? Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. 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. Those payments, which are not guaranteed, are reportedly set at a maximum amount of $6.00 a share and are generally not transferrable. 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. The REIT reportedly acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands. 7:18 pm Is this happening to you frequently? Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. HIT was sold for $25 per share originally. 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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim. Shareholders of the common stock will receive one CVR in exchange for each shareof commonstock. Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III).