hospitality investors trust lawsuit

For more information on The White Law Group, visit. This may be years after you have made your investment. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. The company attributed the decline not only to lower occupancy rates and higher labor costs, among other industry trends, but also to the companys sale of 20 properties that had been included in its prior NAV estimate and to lower estimated sale prices for properties under contract to be sold as compared to their corresponding estimated value included in the previous NAV calculation.. HIT REIT, formerly known as American Realty Capital Hospitality Trust, Inc. is a non-traded real estate investment trust that acquires and owns hotels in the United States. On May 19, 2021, Hospitality Investors Trust, Inc. ("HIT") and its operating partnership, Hospitality Investors Trust Operating Partnership, L.P. (the "OP" and, together with HIT, the "Debtors," and, together with their subsidiaries, the "Company"), entered into a restructuring support agreement (the "RSA") with Brookfield Strategic Real Estate Contact our firm to learn more about your options. All copies must include this copyright statement. 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. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. The amount we charge is based on how much we recover for you. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. Entering text into the input field will update the search result below, high risk non-traded REITs, like HIT REIT. A new name hasn't given Hospitality Investors Trust a clean slate. Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. Read more about our results. Login to Read More Join Now PrintFriendly Author: Martina Bellini Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. Shares were originally sold for $25.00 each. 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). If you are interested in a free and confidential case review, contact us at (800) 277-1193. As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. Unfortunately, it appears that the shareholders and investors who bought the Hospitality Investors Trust may be left with little or nothing after the restructuring. 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. Further, the fund had not even identified any properties to acquire with the offering proceeds. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. Did your Advisor Recommend a Hospitality REIT? Hospitality Investors Trust - how do I recover my losses? 4:25 pm 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. 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. 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 . 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 . Financial advisors could earn commissions and dealer management fees going up to 10% for selling the HIT REIT. 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. Investment Losses? Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy Please provide any additional information about your inquiry. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. A REIT is a real estate investment trust, that is, a group that owns income-producing real estate. Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. Get a free and confidential consultation. Thus, the securities law firm of Peiffer Wolf has begun another investigation into any and all brokers and advisors who recommended HIT REIT to investors. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. 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. Contact us now for a free consultation! In addition, our investigation has revealed that some advisors who sold HIT REIT to their clients also sold other questionable or potentially unsuitable products to their clients. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. 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. How long will it take to resolve my lawsuit? You may have a claim. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. 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). 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 . 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 . 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. Hospitality Investors Trust Inc. class action, Hospitality Investors Trust Inc. complaints, Hospitality Investors Trust Inc. investigation, Hospitality Investors Trust Inc. liquidation, Hospitality Investors Trust Inc. secondary sales. 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. 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. Our firm is investigating now. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. 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. To learn more about The White Law Group visit www.whitesecuritieslaw.com. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. The most clear and obvious example is William Kahane, the chief executive officer of the trust. Please. In January 2014 sales activity continued under the companys name, but was suspended in November 2015. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? HIT was originally a blind pool offering, further making the investment highly speculative. After all, the hospitality industry has taken a major hit during the pandemic. Schorsch REIT Disaster Lawsuit | Brokerwatch | Peiffer Wolf 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 firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Blog, Current Investigations. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. Because no public trading market for our shares currently exists, the document warns, it will be difficult for our stockholders to sell their shares and, if our stockholders are able to sell their shares, it will likely be at a substantial discount to the public offering price.. You should consult an attorney for individual advice regarding your own situation. Is this happening to you frequently? The REIT primarily owns Hilton, Marriott and Hyatt brands. Investment Losses? A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. 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. The estimated current value of a share based on limited secondary trading values is less than $1, and HIT has now filed for bankruptcy. 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. Selina Hospitality PLC Reports Fiscal 2022 Financial Results 2015 by The White Law Group, LLC All rights reserved. The REIT price continued to decrease over the course of these announcements. For more information, please visit our About Us section. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. Hotel REIT Files Chapter 11 Plan to Hand Itself Over to Brookfield - WSJ 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. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. Bankrupt Eagle Hospitality Says Two Part Owners Wrongly Took - WSJ The bankruptcy plan, issued in June 2021, worsens the situation for investors, with only a potential for payouts, limited to $6 per share and not transferable. and will not be transferable, except in limited instances such as the death of the holder. Since its inception, HIT REIT has had serious problems, which ultimately resulted in AR Capitals former CFO being sentenced to federal prison. Combined with other smaller fees and expenses, approximately 86% of an investors investment was actually being used for instruments by the Trust. Harion has an intensive course in Business Supplementary in Kaplan (Canada). The recovery of millions of dollars of money lost by investors due to the negligent and fraudulent actions of some of the largest firms on Wall Street is a part of the work done by Haselkorn & Thibaut. Fill out this form for a FREE and prompt case evaluation. Hotel REIT Preps Deal to Give Brookfield Control in Bankruptcy There are two types of REITs: publicly traded and non-traded. Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes All copies must include this copyright statement. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to 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 unsecured debt. 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. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. 2015 by The White Law Group, LLC All rights reserved. Kahane is a director at Business Development Corporation of America, American Reality New York Recovery REIT, Inc., and several other American Reality companies. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 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. If you have invested in Hospitality Investors Trust Inc. and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation. 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. KALOS CAPITAL Lawsuit Filed - Securities Lawyer 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. That figure represents a substantial decrease from the REITs original share price of $25/share. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. 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 . According to news reports, on May 13, the REIT's executive officers and employees received $2.5 million in retention bonuses. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. 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. Did your Advisor Recommend a Hospitality REIT? 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. We are smart, experienced, and dedicated professionals who work tirelessly for our clients and take pride in the pursuit of justice on their behalf. Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investors age, risk tolerance, net worth, and investment experience. How to RecoverHospitality Investors Trust (HIT REIT)InvestmentLosses, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021. PDF ARC Lawsuit - The DI Wire The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. My in-laws lost their retirement funds to a dishonest broker. Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. In this case, the REIT is not traded on the exchanges. Attorney Advertising. Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. Hospitality Investors Trust (HIT), a non-trading REIT (formerly American Realty Capital Hospitality Trust), filed for Chapter 11 bankruptcy over the weekend leaving investors with massive losses. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. 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. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." Contact us today for a FREE consultation. Their lawyers are currently representing investors and are looking into the claims of many investors who have lost money in this investment. Thousands of investors who were sold HIT have suffered severe losses. 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. The REIT has reportedly decreased nearly 45% since its initial issuance. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Hospitality Investors Trust REIT Lawsuit Investigation - Gibbs Law Group Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. 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. Typically, we represent clients on contingency fee agreements. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)?

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