Inspired Senior Living of Eugene DST Chapter 11 – Investor Claims & FINRA Arbitration for recovery
The White Law Group is currently reviewing potential claims on behalf of investors who purchased interests in Inspired Senior Living of Eugene DST, a Regulation D private placement offering sponsored by Inspired Healthcare Capital (IHC). We are representing numerous IHC investors in claims against their brokerage firms for allegations of unsuitable investment offerings.
These types of Delaware Statutory Trust (DST) investments are often used in 1031 exchange transactions but may expose investors to higher risks than advertised—particularly if sold through misrepresentation or without proper due diligence.
February 2026 Update: Inspired Healthcare Capital Chapter 11 Filing
Inspired Healthcare Capital’s ongoing financial challenges culminated in a Chapter 11 bankruptcy filing in February 2026, covering more than 160 affiliated entities in the Northern District of Texas. The company reported estimated liabilities of $1–$10 billion, following months of suspended distributions and the appointment of independent managers and restructuring professionals.
Prior disclosures in January 2026 revealed that operational control had shifted to independent management, with Ankura Consulting Group engaged to assist with restructuring efforts. As of February 2026, distributions to investors remain halted, no new capital is being accepted, and uncertainty continues regarding asset values, liquidity, and potential recovery for investors.
(For a comprehensive overview of litigation activity, restructuring developments, and investor recovery options, see our main Inspired Healthcare Capital Lawsuit Update.)
Key Offering Details for Investors
According to a Form D filed with the SEC, Inspired Senior Living of Eugene DST filed to raise $27.5 million from investors beginning in 2023. The offering has a minimum investment of $25,000 and has not yet reported any sales.
Sales commissions, dealer management fees, and related expenses are expected to total over $2.2 million, and more than $2.8 million of the proceeds are allocated for compensation to insiders and affiliates, including acquisition and bridge financing costs.
The issuer is affiliated with Inspired Healthcare Capital, headquartered in Scottsdale, Arizona.
What Are the Potential Problems with DSTs?
While DSTs are promoted as stable real estate income opportunities, they carry a number of risks:
- Lack of Control – Investors have no say in how the property is managed.
- Illiquidity – There is typically no secondary market to sell interests early.
- High Fees – Offering costs and commissions reduce net investment value.
- Suitability Concerns – These investments may not be appropriate for retirees or conservative investors.
If a financial advisor fails to consider your investment objectives or risk tolerance, the recommendation may be unsuitable—opening the door to a FINRA arbitration claim.
Recovering Losses through FINRA Arbitration
FINRA arbitration is the dispute resolution process investors can use to seek compensation from brokerage firms for unsuitable investment recommendations, lack of due diligence, and failure to disclose risks. These cases are generally faster and more cost-effective than traditional litigation.
The White Law Group has represented hundreds of investors in claims involving DST offerings and other high-commission alternative investments.
Talk to a Securities Fraud Lawyer Today
If you were sold Inspired Senior Living of Eugene DST and are concerned about your investment, contact the securities attorneys at The White Law Group for a free consultation.
Call 888-637-5510 or visit www.whitesecuritieslaw.com for more information about how we may help.
FAQs – Inspired Senior Living of Eugene DST
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What is the status of Inspired Healthcare Capital 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. - What should I do if I can’t sell my DST investment?
Unfortunately, DSTs are highly illiquid and difficult to exit early. If the investment was misrepresented or unsuitable for your financial situation, you may be able to recover losses through FINRA arbitration. - Who is responsible if I lose money in this investment?
If your broker recommended this investment without disclosing the risks or conducting proper due diligence, the employing brokerage firm may be liable for damages through arbitration.
