Written by 10:05 pm Blog, Securities Fraud Articles

American Finance Trust (ARC V) Tender Offer

Have you suffered investment losses in American Finance Trust (formerly ARC V)? If so, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to a letter from Mackenzie Realty Capital, a recent tender offer of $16.00 was made to purchase shares of ARC V. Unfortunately for many investors, this would be a significant loss on their capital investment of $25.00 per share.

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like American Finance Trust, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.

According to a preliminary prospectus, risk factors associated with American Finance Trust include:

  • No public market exists for our shares of common stock, nor may a public market ever exist and our shares are, and may continue to be, illiquid
  • We have a limited operating history and limited established financing sources
  • We may incur substantial debt, which could hinder our ability to pay distributions to our stockholders
  • We may incur substantial debt, which could hinder our ability to pay distributions to our stockholders

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be inline with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

If you have invested in American Finance Trust and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

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