American Healthcare REIT Inc. Securities Investigation
Are you concerned about your investment in the illiquid non-traded REIT American Healthcare REIT, Inc?
The White Law Group continues to investigate securities lawsuits involving the liability that broker dealers may have for improperly recommending non-traded REITs such as American Healthcare (formerly known as Griffin-American Healthcare REIT IV and Griffin-American Healthcare REIT III) to investors.
American Healthcare REIT, Inc. announced on October 1, 2021 that it has completed its merger with Griffin-American Healthcare REIT III, Inc. in a tax-free, stock-for-stock transaction that created a combined company of healthcare real estate assets, as we previously reported: see Griffin-American Healthcare REIT III Liquidation
According to a letter to stockholders on March 14, the REIT’s board is recommending that shareholders reject a recent tender offer from Comrit Investments I LP to purchase shares for $6.59 per share. The company claims that American Healthcare REIT’s NAV is currently $9.29 per share as of December 31, 2021.
According to the letter, while there are no guarantees of future distributions or a liquidity event and there can be no certainty regarding the long-term value of the REIT’s common stock, shareholders should reject the offer since would give up their rights to any future distributions as well as their rights to receive any proceeds from any liquidity event that “may be considered” by American Healthcare REIT in the future.
The Risks of Investing in High-risk REITs
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
Non-traded Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.
Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.
Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.
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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you are concerned about investment losses in American Healthcare REIT and would like a free consultation with a securities attorney, please call The White Law Group at 888-647-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.
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