Four Springs Capital Trust Lawsuit Investigation – Help for Investors

Four Springs Capital Trust: Lawsuit Investigation & Investor Update

Have you suffered investment losses in Four Springs Capital Trust? The White Law Group is continuing to investigate potential FINRA arbitration claims on behalf of investors who were sold this non-traded REIT by their financial advisors. Due to its lack of liquidity, valuation uncertainty, and repeated attempts—and failures—to go public, Four Springs Capital Trust may not have been a suitable recommendation for many retail investors seeking conservative or income-focused investments.

About Four Springs Capital Trust

Four Springs Capital Trust is an internally managed REIT that invests in single-tenant, income-producing industrial, medical, service/necessity retail, and office properties across the United States. Like many non-traded REITs, it was marketed to investors as an income-oriented, tax-advantaged alternative investment.

However, non-traded REITs often carry risks that are not fully understood by investors—especially when brokers emphasize dividend income while downplaying limited liquidity or potential declines in value.

Four Springs’ Repeatedly Withdrawn IPO Attempts

Four Springs has made multiple efforts to pursue an initial public offering.

• In 2017, the company canceled its planned $115.9 million IPO due to unfavorable market conditions.

• In December 2022, Four Springs once again withdrew its Form S-11 registration statement, citing similar market concerns.

As of 2025, Four Springs has not revived its IPO plans. Without a public listing, investors remain unable to access a secondary market, prolonging liquidity challenges and preventing them from determining the true value of their shares.

Non-Traded Office & Hybrid REITs: Heightened Risks

1. Changing Office Market Conditions

The shift toward remote and hybrid work continues to pressure the office sector. Reduced demand for office space can lead to declining rental income, lower occupancy rates, and depressed property values—all of which may affect REITs with exposure to office or mixed property portfolios.

2. Interest Rate Environment

Non-traded REITs generally rely on borrowing to finance acquisitions. Higher interest rates increase debt costs, reduce profitability, and may limit the REIT’s ability to maintain dividend payments.

3. Liquidity Challenges

Investors in non-traded REITs like Four Springs often cannot sell their shares on the open market. Redemption programs, if available, may be restricted, suspended, or pay significantly below the investor’s principal.

4. Valuation Uncertainty

Unlike publicly traded REITs, non-traded REITs do not publish real-time market valuations. Appraisals are infrequent and may not reflect current economic conditions, making it difficult for investors to know what their shares are truly worth.

Broker Due Diligence & Potential Liability

Brokerage firms selling alternative investments such as non-traded REITs are required to thoroughly evaluate:

• the investment’s risks,

• its structure,

• fees and commissions, and

• suitability for each specific client.

Unfortunately, non-traded REITs often come with high commissions, sometimes exceeding 10%, creating a significant sales incentive. Advisors may fail to fully disclose the risks or may misrepresent the investment as safe, stable, or low-volatility.

If a broker recommended Four Springs Capital Trust without properly assessing your financial situation—or failed to disclose these risks—they may be liable for your losses through a FINRA arbitration claim.

Lawsuit Options: FINRA Arbitration vs. Class Action

Investors seeking recovery generally have two avenues:

FINRA Arbitration

Most appropriate for investors with significant losses. FINRA arbitration focuses on broker misconduct—such as unsuitable advice or inadequate risk disclosure.

Class Action

More suitable for smaller claims involving allegations against the company itself — not the suitability of your individual recommendation.

For most investors in non-traded REITs, FINRA arbitration is typically the most effective and quickest path to recovery.

Help for Investors

If you have experienced losses in Four Springs Capital Trust, you may be able to recover your investment through a FINRA arbitration claim against your brokerage firm.

For a free consultation with a securities attorney, please contact The White Law Group at 1-888-637-5510.

The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington, representing investors across the country.