Four Springs Capital Trust Securities Investigation
The White Law Group continues to investigate FINRA arbitration claims involving non-traded REITs such as Four Springs Capital Trust.
Four Springs Capital Trust, a private real estate investment trust, focuses on acquiring, owning, and managing a portfolio of single-tenant, income producing retail, industrial, medical, and other office properties, as well as offers developer partnership programs, according to Bloomberg.
According to the DI Wire today, the REIT announced that it has postponed its initial public offering “due to market conditions.”
Earlier this month, Four Springs filed a registration statement to list 18 million common shares on the New York Stock Exchange under the ticker FSPR, and was approved by the Securities and Exchange Commission.
This isn’t the first time the REIT has failed to follow through with an Initial Public Offering. In July 2017 the company similarly canceled a $115.9 million initial public offering due to “unfavorable market conditions,” according to a filing with the Securities and Exchange Commission.
At that time, 5.6 million common shares were expected to be sold between $17.00 and $19.00 each. They were declared effective by the SEC and the company was prepared to list its shares on the NYSE under the ticker symbol “FSPR.”
The Trouble with Non-traded REITs
The trouble with non-traded REITs is that they are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex and are better suited for investors that can afford to risk the total losses of their investment.
Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%. Unfortunately, the high sales commissions associated with non-traded REITs often provide some broker dealers with enough incentive to overlook suitability requirements.
Brokers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration.
Free Consultation with a Securities Attorney
To learn more about the firm’s investigation, please see:
If you suffered losses investing in Four Springs Capital Trust, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our law offices at 888-637-5510.
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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