National investment loss lawyers KlaymanToskes continues its investigation of brokerage firms and financial advisors that made unsuitable recommendations to invest in CNL Healthcare Properties to their customers.
The announcement follows CNL Healthcare’s filing of its most recent Form 8-K with the SEC, disclosing that its Board of Directors approved its Fourth Amendment to its Advisory Agreement. The filing also disclosed that its Board renewed CNL’s Advisory Agreement for an additional two years ending June 30, 2025. Financial professionals who recommended CNL Healthcare may be responsible for any investment losses incurred.
Investors who suffered losses in CNL Healthcare Properties due to their broker/financial advisor are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
CNL Healthcare Properties is “a non-traded Real Estate Investment Trust (REIT) that seeks to provide income and growth” according to its website. The following is a timeline of CNL Healthcare Properties’ recent events which investors should be aware of:
– June 2018: CNL filed a Form 8-K with the SEC, in which it suspended the company’s Distribution Reinvestment Program (“DRP”) and Stock Redemption Plan (“SRP”).
– February 2021: CNL announced its tender offer from Comrit Investments 1 to purchase up to 8,800,000 shares of common stock at a purchase price equal to $4.64 per Share.
– March 2021: Comrit Investments lowered its tender offer to $4.36 per share.
– March 2023: CNL’s Board of Directors unanimously approved $6.92 per share as the Company’s estimated NAV as of December 31, 2022. CNL’s previous estimated NAV was $7.37 per share as of Dec. 31, 2021.
– March 21, 2023: CNL Healthcare filed a Solicitation/Recommendation Statement in which it declared that its Board of Directors recommended that the company’s stockholders reject the tender offer from Comrit Investments 1. Further, CNL’s Statement disclosed that CNL Healthcare allegedly “remains actively engaged in pursuing strategic alternatives” but “does not believe that market conditions will support a liquidating transaction prior to the end of 2023.”
– June 5, 2023: CNL filed its most recent Form 8-K, disclosing that its Board of Directors approved its Fourth Amendment to the Advisory Agreement, dated effective as of June 8, 2023. The Board also renewed CNL’s Advisory Agreement for an additional two years ending June 30, 2025.
REITs such as CNL Healthcare Properties are generally considered to be more complex than traditional investments such as stocks, bonds, and mutual funds, and involve a high degree of risk due to being illiquid.
In KlaymanToskes’ opinion, some Non-traded REITs may offer brokers high sales commissions and other fees in order to incentivize them making recommendations to their clients. Brokers, investment advisors and their firms are responsible for providing suitable investment advice and for disclosing all of the risks and rewards of an investment to the customer.
In the event that a misrepresentation or omission of material facts results in losses suffered by the investor, the brokerage firm may be held liable in a FINRA arbitration claim. Conflicts of interest may include financial advisors offering or recommending financial products or services based on financial incentives such as commission, and/or the financial advisor failing to make recommendations with the customer’s best interest in mind.
Investors that suffered significant losses in CNL Healthcare Properties due to their brokerage firm and/or financial advisor should contact attorney Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options.
Consultations are free and every case is taken on a contingency basis, meaning we do not collect a fee unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com