Inspired Senior Living of Delray Beach DST – Bankruptcy & Investor Claims – Investigation by national securities fraud attorneys, The White Law Group
The White Law Group is filing claims on behalf of Inspired Healthcare Capital (IHC) investors. If you invested in Inspired Senior Living of Delray Beach DST, a Delaware Statutory Trust (DST) sponsored by IHC, we may be able to help you recover your losses.
Delray Beach DST Letter to Investors – February 10th, 2026
In a February 10, 2026 letter to investors, Inspired Healthcare Capital, LLC confirmed that it filed for Chapter 11 bankruptcy on February 2, 2026. The Inspired Healthcare Capital bankruptcy filing, according to the company, is aimed at preserving and maximizing value while it explores strategic alternatives, including a potential asset sale, balance sheet deleveraging, or comprehensive restructuring. The company also secured debtor-in-possession financing to continue operations during the bankruptcy case.
The letter disclosed major governance changes, including the replacement of prior senior management with independent managers and the appointment of M. Benjamin Jones as Chief Restructuring Officer. Luke Lee no longer holds a position with the company. IHC further stated that it intends to preserve and investigate potential claims and causes of action against possible “wrongdoers,” developments that may impact Inspired Healthcare Capital investor claims.
February 2026 Bankruptcy Update – Inspired Healthcare Capital
In February 2026, Inspired Healthcare Capital and more than 160 affiliated entities sought protection under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. Court filings list estimated liabilities between $1 billion and $10 billion. The bankruptcy follows a prolonged period of halted investor distributions, the installation of independent management oversight, and heightened regulatory scrutiny, raising significant questions about asset valuations and the likelihood of investor recovery.
Earlier, in a January 2026 update to investors and advisors, IHC disclosed that independent managers had taken control of key operating and DST-related entities. A restructuring professional from Ankura Consulting Group and outside restructuring counsel were also retained. As of February 2026, distributions remain suspended indefinitely, and the company has confirmed that no new investor capital is being raised.
(For a comprehensive overview of litigation activity, restructuring developments, and investor recovery options, see our main Inspired Healthcare Capital Lawsuit Update.)
August 2025- Distributions Remain Suspended
In July 2025, Inspired Healthcare Capital announced the suspension of new investment offerings and halted distributions to investors, citing an ongoing review by the U.S. Securities and Exchange Commission (SEC). At the same time, the company closed its internal management arm, Volante Senior Living, following the CEO’s resignation, and transferred property operations to third-party managers.
These significant developments have heightened investor concerns — particularly for those who depended on regular distributions for income.
What is Inspired Senior Living of Delray Beach DST?
This DST is a Regulation D private placement designed to pool investor capital for a senior housing development in Delray Beach, Florida. According to a 2022 Form D filing, the sponsor aimed to raise $34.8 million for the project.
- Total Offering Amount: $34,841,317
- Minimum Investment: $50,000
- Estimated Sales Commissions: $3,135,719
- Sponsor Compensation: $3,272,500 (including bridge financing fees)
- Broker-Dealer: Emerson Equity LLC
- Offering Exemption: Rule 506(c) of Regulation D
DSTs like this are often marketed to 1031 exchange investors seeking to defer capital gains taxes. However, they carry high risks, are illiquid, and may be unsuitable for many investors.
Why Are Investors Filing Complaints?
The White Law Group has spoken with investors who allege:
- Distributions were suspended without prior notice, disrupting retirement income plans.
- Risks, high fees, and conflicts of interest were not adequately disclosed.
- Brokers failed to conduct proper due diligence on the investment.
- Broader financial challenges of the sponsor were not communicated.
The SEC review, leadership changes, and operational transfer have also raised questions about the long-term stability and valuation of the Delray Beach property.
Key Risks of DST Investments
- Illiquidity: DST interests generally cannot be sold until the underlying property is sold.
- High Fees & Commissions: Upfront costs (often 7–10%) reduce the amount invested.
- Lack of Control: Investors have no input on management decisions or sale timing.
- Sponsor Conflicts: Sponsors may still collect fees even if the investment underperforms.
Broker Duties & Potential Misconduct
Financial advisors recommending DSTs must:
- Evaluate suitability based on the client’s financial situation and goals.
- Fully disclose all material risks and conflicts of interest.
- Perform due diligence on the sponsor and offering.
Failure to meet these obligations could make the brokerage firm liable for investor losses.
How to Recover Losses
Investors typically cannot sue the DST directly. Most claims are pursued through FINRA arbitration, which handles disputes between investors and brokerage firms.
The White Law Group has successfully recovered millions of dollars for investors in cases involving unsuitable investments.
Free Case Evaluation
If you invested in Inspired Senior Living of Delray Beach DST and sustained losses, call The White Law Group at 888-637-5510 or visit whitesecuritieslaw.com for a free consultation.
Frequently Asked Questions
1. What is the current status of the investment in 2026?
New offerings and distributions remain suspended, and in February 2026, Inspired Healthcare Capital and more than 160 affiliates filed for Chapter 11 bankruptcy in the Northern District of Texas, reporting estimated liabilities of $1–$10 billion.
2. Why could this DST be unsuitable?
High fees, illiquidity, and elevated risk levels may make it unsuitable for retirees or investors needing liquidity.
3. What complaints have been reported?
Suspended distributions, inadequate disclosure of risks, and overconcentration in illiquid investments.
4. Can I file a lawsuit?
Recovery is typically pursued via FINRA arbitration, not through a traditional lawsuit.
5. How do I know if I have a claim?
If your advisor failed to disclose risks, made misrepresentations, or recommended the DST without considering your needs, you may have a case.
