One on 4th DST Lawsuits & Investor Complaints – Updated Investigation

One on 4th DST Lawsuits & Investor Complaints – Updated Investigation

Have you suffered losses investing in One on 4th DST? The White Law Group is continuing to investigate potential securities fraud lawsuits, investor complaints, and FINRA arbitration claims involving brokerage firms that may have unsuitably recommended the One on 4th DST 1031 exchange investment to retail investors.

Understanding One on 4th DST

One on 4th DST is a Delaware Statutory Trust structured as a private placement real estate offering designed for 1031 exchange investors. In 2022, the sponsor reportedly filed a Form D to raise approximately $30.9 million from accredited investors.

As with many DSTs, the offering was marketed to investors seeking tax deferral through §1031 exchanges. However, these investments often involve significant risks that may not be fully understood or properly disclosed.

Risks of Investing in One on 4th DST & Other 1031 DST Offerings

DSTs like One on 4th DST carry material risks, including:

• Illiquidity: Long-term, high-hold investments that cannot be easily sold or traded.

• High Commissions & Fees: Brokers may earn 9% or more, reducing investor returns.

• Loss of Principal: Real estate market declines or sponsor underperformance can result in significant losses.

• Limited Investor Control: Management decisions are centralized with the sponsor or trustee.

• Tax Risks: If IRS requirements are not met, 1031 tax benefits can be jeopardized.

Because of these risks, FINRA and the SEC have repeatedly cautioned brokerage firms about selling complex, illiquid real estate products to conservative or income-oriented investors.

Investor Complaints & Lawsuits: Were You Unsuitably Sold One on 4th DST?

Under Regulation Best Interest (Reg BI), financial advisors must perform due diligence and ensure that recommendations are in the investor’s best interest. Many retirees and income-focused investors have filed complaints involving DSTs after suffering large losses, alleging:

• Misrepresentation of risks

• Unsuitable recommendations

• Overconcentration in illiquid real estate investments

• Failure to conduct due diligence

• Misleading sales presentations emphasizing tax benefits

If your broker recommended One on 4th DST without properly assessing your risk profile, you may have grounds for a FINRA arbitration lawsuit.

Lawsuit Options: FINRA Arbitration vs. Class Action

Investors often ask whether they should join a class action or file an individual FINRA claim.

FINRA Arbitration

• Typically best for investors with losses over $100,000

• Allows claims based on unsuitable investment advice

• Often faster than court litigation

Class Action Lawsuits

• Generally used when many investors have small, similar claims

• Payouts are usually smaller

• Not focused on broker-specific misconduct

Most DST-related recovery cases proceed through FINRA arbitration rather than class actions.

Filing a FINRA Arbitration Claim for One on 4th DST

If you believe you were misled or that One on 4th DST was unsuitable based on your financial situation, you may be able to file a FINRA arbitration lawsuit to recover investment losses.

The White Law Group represents investors nationwide in claims against brokerage firms that improperly recommend high-risk, illiquid real estate offerings.

Call 888-637-5510 for a free, no-obligation consultation.

Frequently Asked Questions

1. Can I file a lawsuit if One on 4th DST has declined in value?

Yes. If your financial advisor failed to adequately disclose the risks or recommended an unsuitable investment, you may be able to recover losses through a FINRA arbitration claim, even if the sponsor itself has not been accused of wrongdoing.

2. Are investors filing complaints about One on 4th DST?

Investors in DST offerings frequently file complaints involving suitability, lack of liquidity, and misrepresentation. If you experienced similar issues with One on 4th DST, you may have a potential claim.

3. Is One on 4th DST part of a class action lawsuit?

At this time, most DST-related claims proceed as individual FINRA arbitration cases, not class actions. Our attorneys can advise which option best fits your circumstances.

About The White Law Group

The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. The firm represents investors in claims against brokerage firms through FINRA arbitration.

Visit our homepage to learn more about how we help investors recover losses.