NexPoint Life Sciences II, DST Investigation
Delaware Statutory Trust (DST) investments, such as NexPoint Life Sciences II, DST, are often marketed as tax-advantaged real estate options for 1031 exchange investors. However, these investments carry significant risks, including lack of liquidity and potential high fees. If your financial advisor recommended NexPoint Life Sciences II, DST without fully disclosing the risks, you may have grounds for a FINRA arbitration claim to recover losses.
According to SEC filings, NexPoint Life Sciences II, based in Dallas, TX, filed a Form D to raise capital from investors. The total offering amount sold was purportedly $18,708,724, according to the Reg D Filing.
Is a NexPoint DST Investment Right for You?
Before investing in 1031 DSTs, investors should carefully evaluate whether these products align with their investment goals, risk tolerance, and liquidity needs. Financial advisors have a duty to conduct a suitability analysis based on factors such as:
- Liquidity needs
- Investment time horizon
- Risk tolerance
- Age and income
Brokerage firms must also perform due diligence before recommending these investments. Unfortunately, some advisors fail to properly assess whether DSTs, including NexPoint Life Sciences II, DST, are suitable for their clients.
Lawsuits & FINRA Claims for DST Losses
The securities attorneys at The White Law Group are investigating whether FINRA-registered brokerage firms may be liable for unsuitable recommendations of NexPoint Life Sciences II, DST and other high-risk DST investments.
Despite the risks, brokerage firms often push DSTs due to the high commissions they generate. If your broker misrepresented the risks or failed to conduct proper due diligence, they may be held liable for investment losses through a FINRA arbitration claim.
Class Action Lawsuit vs. FINRA Arbitration: Which Is Right for You?
If your investment losses exceed $100,000, an individual FINRA arbitration lawsuit is typically the best legal option. Class action lawsuits are more suitable for investors with smaller claims, but they often result in lower recovery amounts per claimant.
Get a Free Consultation
If you have suffered losses in NexPoint Life Sciences II, DST, you may have legal options. Contact The White Law Group today at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington.
Last modified: April 3, 2025
