NEW YORK, NY / ACCESSWIRE / February 26, 2024 / National investment loss lawyers KlaymanToskes is investigating brokerage firms and brokers/investment advisors who recommended Griffin-American Healthcare REIT IV to their customers, when the investment was illiquid for a share price of $10. Recently, the REIT has lost 60% of its market value since its reverse stock split share price of $31.40, and the completion of its initial public offering, during which American Healthcare REIT (NYSE: AHR)shares were sold at the bottom of their marketed range.
Investors who suffered losses in excess of $100,000 due to their broker/financial advisor’s unsuitable recommendations and/or overconcentration of investments in Griffin-American Healthcare REIT IV and/or any other illiquid REITs and Business Development Companies (“BDCs”) should immediately contact KlaymanToskes at (888) 997-9956.
American Healthcare REIT, formerly known as Griffin-American Healthcare REIT IV, is a real estate investment trust (“REIT”) that acquires, owns and operates clinical healthcare real estate properties. Shares of American Healthcare REIT’s common stock began trading under the symbol AHR on the New York Stock Exchange on February 7, 2024, with Bank of America and Morgan Stanley acting as lead book-running managers for the offering.
The REIT’s estimated net asset value (NAV) per share for Class T and Class I common stock was $31.40 as of December 31, 2022 after a 4 – 1 reverse stock split. American Healthcare REIT’s assets were valued at approximately $4.6 billion as of September 30, 2023, and it currently has a market value of approximately $1.5 billion, based on the outstanding shares listed in its filings with the Securities and Exchange Commission (SEC). The company expected an IPO share price ranging from $12 to $15 per share, however, 56 million shares were sold at a price of $12 per share, falling on the lower end of the marketed range, and leading to a market value loss of over 60% for investors since the company’s reverse stock split.
Brokerage firms and financial professionals that recommended investments in REITs may be liable for any investment losses incurred by their customers. Brokerage firms must diversify their clients’ portfolios and cannot overconcentrate their customers’ accounts in any one investment product or market sector.
Additionally, 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 REIT investment recommendations is the high sales commissions brokers typically earn for selling REITs, 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.
If you suffered investment losses in excess of $100,000 in Griffin-American Healthcare REIT and/or any other illiquid alternative investments including REITs and BDCs, due to your brokerage firm or financial advisor, contact attorney Lawrence L. Klayman at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
About KlaymanToskes
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.
Contact
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com
SOURCE: KlaymanToskes P.A.