Hospitality Investors Trust – how do I recover my losses?
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On April 20, 2022 GWG Holdings, Inc. (GWG) filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas (case 22-90032). According to an article in the Wall Street Journal, published on the same day, the bankruptcy was due to “accounting issues...read more
A new name hasn’t given Hospitality Investors Trust a clean slate. 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. Investors who suffered heavy losses from buying shares in this REIT may also be able to recover money through FINRA arbitration, explained in further detail below.
Shares in the trust, which owns hotels, originally sold for $25. Unfortunately for investors, any distributions payments have ceased and the trust recently concluded a self-tender offer to purchase its shares at a price of $6.75, according to the lawsuit.
The trust was formed in 2013 as part of Nicholas Schorsch’s scandal-plagued, real-estate fund empire, AR Capital. The lawsuit charges AR Capital, now called AR Global, and a number of affiliated individuals, including Schorsch, with gross abuse of trust and breach of fiduciary duty.
Non-publicly traded real estate investment trusts, or REITs, like Hospitality Investors Trust and other AR Global funds are risky, complex investments that can be very difficult to unload once purchased. Unfortunately, the high sales commissions they offer can encourage investment advisors and stockbrokers to ignore the fact that they are inappropriate for many investors.
If you purchased shares of Hospitality Investors Trust, or another non-publicly traded REIT, through an investment advisor or stockbroker, and have suffered heavy losses, you may be able to recover your money through a process called FINRA arbitration.
FINRA arbitration is a unique, narrow area of the law. The attorneys at Epperson & Greenidge have extensive experience working within FINRA and we specialize in bringing these arbitration claims on behalf of investors.
We accept all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so call 877-445-9261 now to speak to a private placement investment fraud attorney at Epperson & Greenidge for free.