Did your broker recommend an investment in Pacific Oak Residential Trust, Inc.?

The White Law Group is investigating potential securities claims involving the liability that brokerage firms may have for recommending Pacific Oak Residential Trust, Inc. to investors.

Pacific Oak Residential Trust, Inc., a wholly owned subsidiary of Pacific Oak Strategic Opportunity REIT, Inc. acquires and asset manages affordable single family rental properties throughout the United States, according to its website.

Pacific Oak Strategic Opportunity REIT merged with Reven Housing REIT Inc. (NASDAQ: RVEN), a publicly traded REIT, in November 2019, for approximately $56.6 million in cash, or $5.13 per share of Reven common stock. As a result of the merger, Reven became an indirect, wholly-owned subsidiary of Pacific Oak Strategic Opportunity REIT and changed its name to Pacific Oak Residential Trust Inc, according to filings with the SEC.

How Does a Merger Affect Shareholders?

Companies often merge as part of a strategic effort to boost shareholder value, often by creating new business lines and/or gaining  greater market share. However, the economic environment at the time of the merger,  size of the companies and management of the merger process all play a part in future returns for shareholders.

Shareholders may experience a significant loss of voting power, and while the spike in trading volume tends to inflate share prices, if economic conditions are not favorable at the time of the merger, shareholders may see significant losses.

Potential Lawsuits to Recover Financial Losses

The trouble with non-traded REITs  is that they are complex and inherently risky products.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

If you have suffered losses investing in Pacific Oak Residential Trust,  please contact The White Law Group at 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.