National investment loss lawyers KlaymanToskes continues investigating brokerage/investment advisory firms and financial professionals that recommended or sold Hospitality Investors Trust (“HIT REIT”), formerly known as ARC Hospitality Trust Inc., to their customers following the REIT’s bankruptcy.
Investors that suffered significant losses in Hospitality Investors Trust at the hands of their broker/advisor should contact attorney Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options. All consultations are free and we do not collect attorney’s fees unless we obtain a financial recovery for you.
Hospitality Investors Trust is classified as a publicly registered Non-Traded Real Estate Investment Trust (“REIT”) that was marketed as offering current income to investors with a conservative to moderate risk tolerance.
HIT REIT owned 100 hotel properties in 29 U.S. states and was initially sold at $25 per share, dropping to $8.35 per share by late 2019, and reaching $0.46 per share by March 2021. By May 2021, HIT REIT filed for Chapter 11 Bankruptcy protection in an attempt to restructure its $1.3 billion in unsecured debt.
In KlaymanToskes’ opinion, one reason why brokers/advisors and their firms may have unsuitably marketed and sold HIT REIT to customers is due to the high commission and fees (of up to 10 percent) that could be earned off of each transaction.
In addition, HIT REIT was a “blind pool” offering, meaning that the fund did not yet own any properties or significant assets, and had also not identified any properties to acquire with the offering proceeds. In KlaymanToskes opinion, this indicates that brokerage firms and their brokers/advisors were unable to conduct reasonable due diligence of the investment prior to making recommendations to customers.
KlaymanToskes has first-hand experience with the recovery of HIT investment losses and is currently representing Hospitality Investors Trust REIT investors in FINRA arbitration claims. Our firm is investigating full-service brokerage firms that recommended HIT and other illiquid, alternative investments to their customers.
Investors who own Hospitality Investors Trust (“HIT REIT”), or who have suffered investment losses due to unsuitable investment advice or other securities violations, are encouraged to contact Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options.
All cases are taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
To recover investment losses, you generally won’t go through the traditional court system with a lawsuit. The correct path is through FINRA arbitration, a specific process designed for these types of disputes. It involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you require assistance in filing a FINRA arbitration claim to recover losses from Hospitality Investors Trust investments, contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lklayman@klaymantoskes.com to explore your recovery options. Our attorney’s fees are contingent upon achieving 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