National investment fraud lawyers KlaymanToskes is currently pursuing a $500,000 FINRA arbitration claim on behalf of elderly investors that purchased the illiquid, non-traded real estate investment Hospitality Investors Trust (“HIT REIT”). In connection with the claim (22-01081), KlaymanToskes is investigating Joseph Gunnar & Co. and its financial adviser Matthew Gates (CRD# 4727945) following their recommendation to an elderly couple to invest a majority of their savings in HIT REIT.
Investors that purchased Hospitality Investors Trust, formerly American Realty Capital Hospitality Trust (ARC), are encouraged to contact attorney Lawrence L. Klayman, Esq. at
(888) 997-9956 or lklayman@klaymantoskes.com to discuss loss recovery options.
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.
Brokers and their firms unsuitably marketed and sold HIT REIT to customers who lacked the investment experience and the necessary risk tolerance needed to fully understand the potentially severe losses they would later experience. We believe the motive for the selling of Hospitality Investors Trust by brokers and their firms is the high commission of up to 10 percent that could be earned off of each transaction.
KlaymanToskes has first-hand experience with the recovery of HIT investment losses and is currently representing Hospitality Investors Trust REIT (“HIT REIT”) investors in FINRA arbitration matters. Our firm is investigating full-service brokerage firms that recommended HIT and other illiquid, alternative investments to their customers.
Before investing in any financial product, it is important that investors conduct thorough research to fully understand the underlying risks and charges involved. Investors should be cautious when considering investing in non-traded financial products, including non-traded REITs, as they are often high-risk, have limited liquidity, and carry high expenses and fees.
According to securities attorney, Lawrence L. Klayman, “Non-traded REITs are subject to risks that are not easily understood by investors who lack the sophistication to determine the nature of the risks associated with the strategy.”
When a broker or brokerage firm fails to fully disclose all relevant facts related to an investment, including the potential risks and fees involved, a Financial Industry Regulatory Authority (“FINRA”) securities arbitration claim may be the best solution for investors seeking to recover investment losses.
FINRA arbitration is a more cost-effective process for investors, often occurring with increased speed and efficiency over litigation. FINRA arbitration also allows investors to maintain greater flexibility over their case.
Investors who own Hospitality Investors Trust (“HIT REIT”), or who have suffered investment losses due to unsuitable investment advice, securities concentration, misrepresentation or omission of material facts, 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 make a 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.
Lawrence L. Klayman, Esq.
888-997-9956