NEW YORK, NY / ACCESSWIRE / December 11, 2024 / National investment loss and securities law firm KlaymanToskes continues its investigation of representations made by financial advisors who recommended investments in Creative Media & Community Trust Corporation (NASDAQ:CMCT), and is preparing to file FINRA arbitration claims seeking to recover significant damages on behalf of an investor who suffered significant losses in CMCT. Investors who suffered losses of $100,000 or more as a result of a recommendation by their broker/investment advisor should contact the law firm immediately at 888-997-9956. Investors with self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our representation.
CMCT’s stock price has recently plummeted to $0.21 per share, representing an overall decline of 94.9% within the past year. Following the redemption of CMCT’s preferred stock during the second quarter of 2024, approximately 25% of the outstanding preferred shares were converted into common stock. Many investors, facing limited liquidity options, either chose or were compelled to receive their redemption in common stock. This increase in available shares contributed to significant downward market pressure, resulting in devastating losses for investors.
KlaymanToskes’ continues its investigation of brokerage firms and financial advisors who may have failed to adequately disclose the liquidity risks and potential impacts of the preferred stock redemption to investors. Many investors were left holding significantly devalued positions in CMCT common stock, which were below their original investment values.
Investment firms may be held liable for any losses incurred by their customers if they fail to act in best interest of their customers, make unsuitable investment recommendations, misrepresent or omit material facts, and/or overconcentrate the customer’s portfolio in one particular investment, class, or market sector. Further, financial professionals and their firms cannot disregard a customer’s risk-tolerance when making investment recommendations.
Investors who suffered investment losses in Creative Media & Community Trust Corporation (NASDAQ:CMCT) due to unsuitable recommendations by their brokerage firm/financial advisor are encouraged to contact attorney Steven D. Toskes at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation 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.
Steven D. Toskes, Esq.
888-997-9956
investigations@klaymantoskes.com
www.klaymantoskes.com