NB Mountain Valley DST Investor Alert: Chapter 11 Bankruptcy Update

Securities Investigation & Bankruptcy Filing, Featured by top securities fraud attorneys, The White Law Group

If you have suffered investment losses in NB Mountain Valley DST, please call The White Law Group at 888-637-5510.

Breaking: Chapter 11 Bankruptcy Filing

On August 19, 2025, NB Mountain Valley, DST (the entity behind the Mountain Valley Apartments student housing complex in Morgantown, WV) filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of West Virginia (Case No. 25-00456).

• The case is labeled as a voluntary Chapter 11 filing, and was officially updated in court records on August 20, 2025.

• The filing indicates the company has assets and liabilities estimated between $10 million and $50 million, and that funds may be available for distribution to unsecured creditors.

• Additionally, an affiliated entity, NB Mountain Valley Leaseco, LLC, also filed for Chapter 11 on the same date in the same jurisdiction.

Why this matters for investors:
This bankruptcy filing reinforces potential claims for investors—particularly if their broker-dealers failed to disclose risks or misrepresented the stability of the DST private placement investment. It can also affect the value and recoverability of invested principal.

NB Mountain Valley DST: Securities Investigation

Nelson Partners reportedly filed a Form D to raise capital from investors for the offering NB Mountain Valley DST in 2017. The total offering amount was purportedly $15,702,591. The White Law Group is actively investigating potential securities claims against FINRA-registered broker-dealers who may have improperly recommended NB Mountain Valley DST, possibly without adequately disclosing its risks.

DSTs: Limited Liquidity & Investor Risk

Investments in Delaware Statutory Trusts (DSTs) come with notable risks:

• Extremely limited liquidity—these investments are typically long-term and not easily sold.

• Principal at risk due to market volatility or poor asset performance.

• Investor control is limited, as decisions are largely made by trustees.

• Tax benefits may be compromised if regulatory requirements are not met.

These risks are well-documented and highlight why such offerings require rigorous disclosure and suitability assessments by broker-dealers.

Filing a Complaint Against Your Brokerage Firm

If you were sold NB Mountain Valley DST by a broker who failed to properly disclose the risks (illiquidity, potential insolvency, DST complexity), you may have grounds for a FINRA arbitration claim.

Brokerage firms often promote DSTs due to high commission structures, despite their unsuitability for many investors.

Free Consultation with a Securities Attorney

If you’re concerned about losses related to NB Mountain Valley DST:

• Contact The White Law Group for a free consultation. They specialize in securities fraud, FINRA arbitration, and investor protection and represent investors on a contingency fee basis.

• Phone: 888-637-5510

• Offices located in Chicago, IL, and Seattle, WA

Frequently Asked Questions about NB Mountain Valley DST

1. What does the NB Mountain Valley DST bankruptcy mean for investors?
The Chapter 11 bankruptcy filing means the trust is restructuring its debts in court. Investors may face reduced distributions, delayed payments, or even loss of principal. It also opens the door for potential legal claims against the brokers who recommended the DST if they failed to disclose the risks.

2. Can I recover losses from my Nelson Brothers DST investment?
Yes, in some cases. While recovery through the bankruptcy court may be limited, investors may be able to pursue claims against the brokerage firms that sold NB Mountain Valley DST. These claims are typically handled through FINRA arbitration, which can provide a path to recover investment losses.

3. Why are DST investments considered risky?
DSTs are generally illiquid, long-term investments with little to no secondary market. They often carry high fees and commissions, limited investor control, and risks tied to the performance of a single real estate property. If the property struggles financially—as in this case—investors may face significant losses.