Securities Investigation – Hospitality Investors Trust Inc.
Are you concerned about Hospitality Investors Trust Inc. losses? If so, the securities attorneys at The White Law Group may be able to help your recover your losses by filing a FINRA claim against the brokerage firm that sold you the investment.
Hospitality Investors Trust Inc., a publicly registered non-traded REIT, is sponsored by AR Global. The REIT acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands, according to Bloomberg.
According to recent SEC filings, the REIT has announced a share repurchase program, effective October 1, 2018. The repurchase price is $9.00 per share, approximately 35 percent lower than the company’s most recent net asset value per share of $13.87.
The board reportedly approved the program for shareholders looking to cash out, but recommend that investors do not sell their shares at this reduced price.
Repurchases will be conducted on a quarterly basis at the repurchase price effective on the last business day of the quarter.
Alternative investments such as Hospitality Investors Trust Inc. are illiquid. Investors looking to sell alternative investments often have difficulty finding a buyer, and can suffer significant losses on the sale.
Unfortunately for investors, this sales price would represent a significant loss on their capital investment, as the original purchase price was $25.00 per share.
Recovery of Hospitality Investors Trust Inc. Losses
The White Law Group is investigating potential claims against the broker dealers that improperly sold high risk non-traded REITs, like Hospitality Investors Trust Inc., to unsuspecting 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 appropriate in light of 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 in a FINRA arbitration claim.
If you are concerned about Hospitality Investors Trust Inc. losses 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. To learn more about The White Law Group visit www.whitesecuritieslaw.com.
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