Medical Properties Trust, Inc. (“MPT”) is a publicly traded real estate investment trust (“REIT”) that primarily invests in hospitals in the United States and several other countries. MPT (NYSE: MPW) has faced a number of challenges recently, including a reported 2023 fourth-quarter net loss of $664 million, a recently filed class action lawsuit, and the continued instability of its share price. The last time the REIT declared a dividend was in November 2023, and it was $0.15 per share.
The Wall Street Journal recently reported that Steward Health Care, the biggest tenant for Medical Properties Trust (MPT), responsible for one third of its total revenue, is filing for chapter 11 bankruptcy. MPT REIT is also one of Stward’s largest shareholders, holding over 25% of the company’s shares. KlaymanToskes’ investigation indicates that MPT REIT’s shares will likely be wiped out by Steward’s bankruptcy, and the company will likely lose its previous rental dues.
MPT REIT is also currently facing a securities fraud class action lawsuit which alleges that Medical Properties Trust (NYSE: MPW) engaged in a scheme to conceal the true state of its assets. The complaint further alleges that the defendants utilized various questionable transactions to artificially support the value of the REIT’s non-performing assets temporarily, to avoid recording impairment charges.
According to the REIT’s 2021 prospectus filing with the Securities and Exchange Commission (“SEC”), the joint book-running managers for the offering were Barclays, BofA Securities, Goldman Sachs & Co., and J.P. Morgan. As the joint managers for the REIT’s investment offerings, these brokerage firms are responsible for conducting proper, complete and accurate due diligence, and have a heightened duty to disclose any potential risks to their customers. As registered FINRA broker-dealers, Barclays, BofA Securities, Goldman Sachs & Co., and J.P. Morgan have a responsibility to provide their customers with suitable investment advice, and to avoid conflicts of interest.
National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in Medical Properties Trust, Inc. (REIT) (NYSE: MPW) to their customers. Our firm believes many investors may have been misled regarding the risks and liquidity issues associated with MPT Operating Partnership, L.P. and MPT Finance Corporation’s investment offering.
A recently filed securities fraud class action lawsuit alleges that Medical Properties Trust (NYSE: MPW), along with some of its executives and board members, participated in a scheme to conceal from investors the true state of its assets. Despite the company’s public statements and representations to investors, the lawsuit asserts that its asset portfolio was in significant distress and failing to generate expected revenue, leading to an inability to make rent payments.
Investors should know that class-actions may take many years to resolve, and that payouts are generally heavily undervalued. KlaymanToskes previously conducted a detailed study of securities arbitration versus class action and concluded that Financial Industry Regulatory Authority (“FINRA”) arbitration claims traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit.
Accordingly, investors should consider all their legal options, including filing a securities arbitration claim with FINRA, against the brokerage firm who recommended the purchase of MPT REIT. A FINRA arbitration claim may result in a greater and additional recovery.
If you suffered losses in Medical Properties Trust (REIT), or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Medical Properties Trust (MPT REIT) is a self-advised REIT listed on the New York Stock Exchange (NYSE: MPW) and is considered a high-risk alternative investment. Many investors are not aware of the risks and liquidity problems associated with REITs. REITs are considerably more complex than traditional stocks and mutual funds, and involve a high degree of risk due to being illiquid.
In its “risk factors disclosure” MPT REIT states that “There is no established trading market for the Notes and if an actual trading market does not develop, you may not be able to resell them quickly, for the price that you paid or at all.”
Financial professionals and their firms have a fiduciary duty to recommend suitable investments that are in their customer’s best interest. The brokers and financial advisors responsible for selling Medical Properties Trust REIT may be held responsible for any financial losses sustained by investors. Brokerage firms and financial advisors must consider their client’s risk tolerance prior to making recommendations, and cannot overconcentrate their customers’ accounts in any one investment product or market sector.
KlaymanToskes is a leading national securities fraud law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The article linked below contains important information relating to KlaymanToskes’ investigations of Medical Properties Trust REIT:
If you suffered losses in Medical Properties Trust REIT, or any other investments, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million for investors (exclusive of attorneys fees and costs), and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with alternative investment recommendations, such as REITs and BDCs, is the high sales commissions brokers typically earn for selling these investments, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process 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 suffered losses in Medical Properties Trust REIT or other investment losses, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Medical Properties Trust REIT. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable Medical Properties Trust REIT, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.