Worried about investment losses in ShadowGlen DST?
The White Law Group is investigating potential securities fraud claims related to ShadowGlen DST and whether brokerage firms may have unsuitably recommended this 1031 DST offering to investors.
Understanding ShadowGlen DST
ShadowGlen DST is a Delaware Statutory Trust (DST) structured as a private placement real estate investment. In 2021, the commercial real estate fund reportedly filed a Form D to raise capital from investors, with an offering amount of approximately $26,893,742.
Risks of Investing in DSTs
Private placement DSTs, like ShadowGlen DST, carry significant risks, including:
- Illiquidity: These investments are long-term and difficult to sell.
- High Fees & Commissions: Brokers and advisors may earn more than 9% in commissions and fees, which can impact investor returns.
- Potential for Loss of Principal: Market volatility or poor real estate performance can lead to substantial losses.
- Limited Investor Control: Management decisions are made by a trustee, restricting investor influence.
- Tax Implications: If regulatory requirements are not met, potential tax benefits could be at risk.
Did Your Broker Unsuitably Recommend a DST investment?
Under the SEC’s “Regulation Best Interest” standard, brokerage firms must conduct due diligence before recommending investments. If a financial advisor fails to assess risk suitability and investors suffer losses, they may have grounds for a complaint or lawsuit.
Lawsuit Options: FINRA Arbitration vs. Class Action
Investors considering legal action may wonder whether a class action lawsuit or an individual FINRA arbitration claim is the better option. Typically:
- FINRA Arbitration is often more suitable for investors with losses exceeding $100,000.
- Class Action Lawsuits are usually pursued when numerous investors have small claims that are impractical to litigate individually.
Filing a Lawsuit for Losses in ShadowGlen DST
If you have concerns about your investment in ShadowGlen DST, you may be able to recover losses through a FINRA arbitration claim. The White Law Group represents investors nationwide in securities arbitration cases.
For a free consultation, call 888-637-5510 to discuss your legal options with an experienced securities attorney.
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 investor recovery options.
Last modified: March 27, 2025
