To learn more about The White Law Group visit www.whitesecuritieslaw.com. The result is a long way from where the REIT started in 2014 when it raised $903 million from investors. HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. Hospitality Investors Trust (HIT) REIT Files Bankruptcy - Investor Alert Joe Peiffer, Responsible Attorney. Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. These loans have an interest rate of 15% per year. Gibbs Law Group attorneys have fought some of the most complex cases brought under federal and state laws nationwide, and have been recognized with numerous awards and honors for their accomplishments, includingTop 100 Super Lawyers in Northern California,Top Plaintiff Lawyers in California,The Best Lawyers in America, and ratedAV Preeminent(among the highest class of attorneys for professional ethics and legal skills). The White Law Group, LLC Announces Potential Securities Claims Hospitality Investors Trust (HIT), a non-trading REIT (formerly American Realty Capital Hospitality Trust), filed for Chapter 11 bankruptcy over the weekend leaving investors with massive losses. An REIT is a company that owns and operates large amounts of real estate. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. Bankrupt hotel chain Eagle Hospitality Real Estate Investment Trust alleged in a court filing that two of its big investors received $2.4 million in federal coronavirus aid on behalf of its Queen . There were numerous conflicts of interest within the trust. This means that investors could have suffered over 95% losses on their investment, or even worse. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). More than 12 hospitality venues have shut each day in Britain over the past year as they struggle with higher costs such as soaring energy prices, according to figures. Ashford Hospitality Trust gave up a portfolio of 13 hotels as it struggled to stem losses and fumbled with forbearance agreements in an effort to avoid defaults. Further, in February of 2019 the Board of Directors announced that it suspended the Companys Share Repurchase Program. The bankruptcy court must enter a confirmation order no later than June 23, 2021. Shares were originally sold for $25.00 per share. Get a free and confidential consultation. This bankruptcy may be bad news for investors who were sold shares in HIT. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. The maximum amount of payments made per CVR will not exceed. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." The trust. AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. Silver Law Group and Scott Silver aggressively pursued their losses until he got their money back., You and your entire staff have been wonderfully organized, professional and a delight to hear from. SEC.gov | HOME The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Please. We are the founder of Mass Torts Made Perfect. Proskauer represented Hospitality Investors Trust in a series of restructuring transactions.Hospitality Investors Trust, Inc. ("HIT"), a public, SEC-registered real estate investment trust owning 100 hotels nationwide, This content is for members only. One reason many brokers may have sold HIT REIT to their clients is because of the significant commissions paid to them as HIT charged high upfront fees and commissions. In January 2014 sales activity continued under the companys name, but was suspended in November 2015. Investigating Potential Lawsuits involving Healthcare Trust Inc. On May 19, 2021, Hospitality Investors Trust Inc., a non-traded REIT that owns a portfolio of hotel properties, According to filings, each share of Hospitality Investors Trust common stock outstanding will be cancelled and exchanged for a right to receive contingent cash payments (CVR). The recovery of millions of dollars of money lost by investors due to the negligent and fraudulent actions of some of the largest firms on Wall Street is a part of the work done by Haselkorn & Thibaut. has handled claims involving HIT REIT and other similar products and can help you fight to recover your losses. the Company and its operating partnership, Hospitality Investors Trust Operating Partnership, L.P., a Delaware limited partnership (the "OP"), entered into a Restructuring Support Agreement (as may be subsequently amended or modified from time to time, the "RSA") with the Supporting Stockholder; WHEREAS, on May 19, 2021 Brokers, financial advisors, and brokerage firms who recommended HIT REIT knew or should have known of the risks and issues; brokers should never have sold HIT REIT to investors. It owns a portfolio of a hundred properties across 29 states in the US. Soon after, in May 2021, a chapter 11 bankruptcy protection was filed by HIT. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Our advisor has no operating history and is a newly formed entity which has no experience operating a public company., There is no guarantee that distributions will be paid. HIT REIT believes that additional liquidity from a source other than property operations the company requires may not be available on favorable terms or at all., The company notes that the objective of the limited partnership amendment with Brookfield is to preserve the companys cash position as it continues discussions with the Brookfield investor regarding a holistic solution to the companys liquidity dilemma.. These professionals are ethically bound to tell their clients about the risks associated with recommended investments. Further, Hospitality Investors Trust, one of the investments allegedly recommended to the claimants, filed for Chapter 11 Bankruptcy on May 19, 2021 to restructure its $1.3 billion unsecured debt. These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. Speak with one of our securities attorneys to learn more about recovering your losses. HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes 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 investors age, risk tolerance, net worth, and investment experience. High inflation and the cost . Further, the fund had not even identified any properties to acquire with the offering proceeds. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim. The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. As such, we believe that part of our role as attorney is to offer a supportive environment for our clients and to provide advice and support as we attempt to recover these investment losses. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? Investors in Hospitality Investors Trust INC (HIT), earlier known as American Realty Capital Hospitality Trust (ARCHT), are facing significant losses, up to 95% of the amount invested. The bankruptcy plan, issued in June 2021, worsens the situation for investors, with only a potential for payouts, limited to $6 per share and not transferable. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. (504) 523-2434 On May 19, 2021, Hospitality Investors Trust Inc., a non-traded REIT that owns a portfolio of hotel properties, filed for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. The White Law Group continues to HIT REIT Files for Chapter 11 Bankruptcy Protection The White Law Group continues to investigate potential securities claims involving Blog, Current Investigations, Securities Fraud. We have a national team of attorneys and staff who look forward to speaking with you. Led by attorney Peter Mougey, the past President of the national securities bar PIABA, our Securities and Business Tort Department has represented more than 1,500 investment fraud victims across the country in state and federal court and securities industry arbitration. To learn more about the firms investigation, please see: Hospitality Investors Trust Decreases NAV close to 40%. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. A broker also has an ethical obligation to consider an investors risk tolerance, age, investment experience, and net worth when determining whether a certain investment is suitable for the client. This field is for validation purposes and should be left unchanged. HIT REIT Shares were originally sold for $25.00 per share. Last December we told you that Hospitality Investors Trust Inc. (HIT REIT), a publicly registered non-traded REIT, amended its limited partnership agreement with its investment partner, Brookfield Strategic Real Estate Partners II Hospitality REIT II LLC. Our law firm has been in existence for more than 65 years, and is recognized as one of the preeminent law firms in the United States. For example, several executives in the trust have financial interests in other REITs and other non-traded business development companies. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale. HIT was originally a blind pool offering, further making the investment highly speculative. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment., We established the initial offering price on an arbitrary basis; as a result, the actual value of your investment may be substantially less than what you pay., There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, property manager, our sub-property manager, our sponsor, our dealer manager and our and their respective affiliates, which could result in decisions that are not in the best interests of our stockholders., We are obligated to pay fees to our advisor, which could be substantial and may result in our advisor recommending riskier investments., Taken together, these factors make Hospitality Investors Trust a highly risky investment that likely was not suitable for inexperience and/or conservative investors, especially those with liquidity needs and/or those who cannot afford to lose their principal. Investors who have been sold the HIT REIT unsuitably and have lost money, as a result, could seek recovery through the FINRA (Financial Industry Regulatory Authority) arbitration process. If we take your case under a contingency fee arrangement, you wont owe our firm any legal fees unless we are able to recover money for you. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, L&L, Mitsubishi default on Plaza District office tower, Investors bet big on comeback for UK pubs, Manhattan hotel trades in biggest distressed lodging deal of pandemic. The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. Hospitality Investors Trust Inc. (HIT REIT) Investment Losses. In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. On May 19, 2021, the New York-based Hospitality Investors Trust filed for Chapter 11 bankruptcy to attempt to restructure its $1.3 billion debt. Each engagement agreement includes the details of the fee arrangement. This law blog website is managed by MileMark Media. California-based REIT Sunstone Hotel Investors gave control of the Hilton Times Square to its special servicer, Torchlight Investors, in December. Since its inception, HIT REIT has had serious problems, which ultimately resulted in AR Capitals former CFO being sentenced to federal prison. He assumed the Investor Relations position at Valora Asset Management on january/2020. Shares were originally sold for $25.00 each. Get free professional market insights and stock/ETF reports that contain actionable opportunities written by a former financial advisor and Capitalist who has been investing in the markets for 20+ years. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. Hospitality Investors Trust Commences Bankruptcy Case Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. Recent investor complaints against Boca Raton financial advisor Adam Brown (CRD# 4506309) allege that he breached his fiduciary duty and 2017 - 2023 Chase Carlson. There are two types of REITs: publicly traded and non-traded. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. The private REIT, which owns hotels branded by Hilton, Marriott and Hyatt, on Tuesday filed a lawsuit in New York against six insurers over a "sham investigation" meant to delay and deny up to. Real estate investment trusts (REITs) are. If you invested in HIT REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website. Please call us or use ourcontact formto request a Free Case Evaluation. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); We are a nationwide litigation law firm that represents individuals and entities who have been the victims of negligence, fraud or the misconduct of powerful interests. The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. NEW YORK . Did you lose money by following a brokers recommendation to invest in Hospitality Investors Trust REIT? They have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. The updated NAV has decreased 33.6 percent since the previous valuation of $13.87 per share NAV in December 31, 2017. Blog, Current Investigations. Are you concerned about Hospitality Investors Trust Inc. (HIT REIT) losses? That figure represents a substantial decrease from the REITs original share price of $25/share. Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021, Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. Healthcare Trust REIT Lawsuits | Recover Your AR Global REIT Losses Hospitality Investors Trust Losses - Investigation - The White Law Group This is a national conference attended by 1,500 lawyers each year where we teach how to successfully handle lawsuits against the largest companies in the world. According to Central Trade & Transfer, a secondary market for non-traded REITs, shares of HIT REIT sold for just $0.46 per share in 2021. (504) 608-1465. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. The estimated current value of a share based on limited secondary trading values is less than $1, and HIT has now filed for bankruptcy. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. CHICAGO, June 03, 2021 (GLOBE NEWSWIRE) -- The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended Hospitality Investors. Hospitality Investors Trust is negotiating a deal that would give Brookfield financial control over its 100 hotels as part of a possible Chapter 11 filing, Bloomberg News reported. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. Similar to American Finance Trust, Inc. (AFIN), VEREIT, and ARC NYC REIT, HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. 1519 Robert C. Blakes Sr Dr, 1st Floor Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. Previously in January of 2017, the company had suspended distributions indefinitely, significantly harming investors. In June 2017, for instance, HITs NAV per share was estimated at $13.20 as of March 30th, 2017, a decline of approximately 38.6 percent year-over-year from the previous NAV of $21.48/share, according to The DI Wire. Hospitality Investors Trust Inc (HIT REIT), formerly known as American Realty Capital Hospitality Trust (ARCHT), is a registered non-traded real estate investment trust. Brokers have an opportunity to earn high commissionssometimes as high as 15% onthe sale ofnon-traded REITs. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. If you invested in Hospitality Investors Trust REIT you were recently advised that the company filed for Chapter 11 bankruptcy on May 19, 2021, and you are now facing the loss of a significant portion of your investment. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. Ashford has created an Ashford App for the hospitality REIT investor community. These increases were mainly a result . When a broker fails to fulfill these obligations, the firm that employs them may be held accountable for losses suffered by an investor to whom an unsuitable investment recommendation was made. Unfortunately for investors, this sales price would represent a significant loss on their capital investment, as the original purchase price was $25.00 per share. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Hospitality Investors Trust REIT and its operating partnership filed petitions for bankruptcy and investors are filing lawsuits to recover losses. Combined with other smaller fees and expenses, approximately 86% of an investors investment was actually being used for instruments by the Trust. ContactPeiffer Wolf today by filling out aContact Formon our website or by calling585-310-5140to schedule aFREE Case Evaluation. If you are interested in a free and confidential case review, contact us at (800) 277-1193. Hospitality Investors Trust is classified as a Non-Traded Real Estate Investment Trust ("REIT") that was touted as offering current income to investors with a conservative to moderate. Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy According to the US Securities and Exchange Commission, [b]ecause they do not trade on a stock exchange, non-traded REITs involve special risks. Hospitality Investors Trust (HIT) Lawsuits - Compensation & Help Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, is a non-traded REIT. The REIT has reportedly decreased nearly 45% since its initial issuance. The White Law Group Files Another Lawsuit Involving Hospitality Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. Typically, we represent clients on contingency fee agreements. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinoisand Seattle, Washington. The REIT price continued to decrease over the course of these announcements. Hospitality Investors Trust Inc. Losses Investors may have claims. HIT REIT has yet to declare a Net Asset Value (NAV) for 2020. NEW ORLEANS | ROCHESTER | CLEVELAND | LOS ANGELES | SAN FRANCISCO | ST. 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Investors in this real estate fund, formerly known as American Realty Capital Hospitality Trust, have seen their share values plummet, and a lawsuit, filed recently in federal court, charges malfeasance and seeks damages. Investors are unlikely to recover much of the money they invested. The White Law Group is investigating potential securities fraud claims involving broker-dealers improper recommendation that investors purchase high-risk non-traded REIT investments, like Hospitality Investors Trust(aka HIT REIT). HIT REIT, formerly known as American Realty Capital Hospitality Trust, Inc. is a non-traded real estate investment trust that acquires and owns hotels in the United States. NEW YORK, June 11, 2021 (GLOBE NEWSWIRE) -- National investor fraud law firm, KlaymanToskes ("KT"), announces an investigation on behalf of investors in Hospitality Investors Trust ("HIT . Broker dealers are required to perform adequate due diligence on any investment they recommend. According to filings, each share of Hospitality Investors Trust common stock outstanding will be cancelled and exchanged for a right to receive contingent cash payments (CVR). Attorney Advertising. Hospitality Investors Trust - Overview, News & Competitors - ZoomInfo Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. The maximum amount of payments made per CVR will not exceed $6.00 and will not be transferable, except in limited instances such as the death of the holder. Dedicated to the representation of investors in claims against their financial professional or brokerage firm, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. Previously known as American Realty Capital Hospitality Trust, it came under fire for a 2017 investment deal that gave Brookfield substantial control over the company and led Hospitality Investors to suspend stockholder distributions. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors. Many debts under the plan are to be satisfied in full, including those of general unsecured creditors. Our firms investigation has revealed that some brokers and financial advisors allegedly sold the HIT REIT as a conservative, safe, asset backed, or moderate risk investment. In materials provided to shareholders, the company reportedly attributed the decline in part to higher exit capitalization rates due to an increase in the interest rate environment since the 2016 valuation., In May 2019, HITs board announced that it the REITs NAV/share was $9.21 as of December 31, 2018, an approximate 33.6 percent decrease compared to the previous $13.87 per share NAV, as of December 31, 2017, according to The DI Wire. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. It was a risky investment from the beginning, because it did not have assets or own real estate properties. Then, during a HIT REIT quarterly investor presentation in April of 2018, the company reported. We provide confidential and free initial consultations and case reviews. How to RecoverHospitality Investors Trust (HIT REIT)InvestmentLosses, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. Healthcare Trust REIT Lawsuit Investigation AR Global's Healthcare Trust REIT decreases NAV per share; Investors lose thousands Our firm is investigating AR Global's Healthcare Trust, Inc. on behalf of REIT investors. If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm. Firms that fail to do so, may be held responsible for any losses. Thus, the securities law firm of Peiffer Wolf has begun another investigation into any and all brokers and advisors who recommended HIT REIT to investors. Non-traded REITs are risky investments, but they may offer high commissions, so that brokers may have an incentive to get clients to buy shares. A broker or financial advisor who recommends unsuitable investments, or who does not take these factors into consideration, may bear some liability for losses. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). It can be extremely difficult to valuate or sell a non-traded REIT, especially as these shares are not listed on a national securities exchange. Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation. Hospitality Investors Trust is negotiating a deal that would give Brookfield financial control over its 100 hotels as part of a possible Chapter 11 filing, Bloomberg News reported. In fact, at first, it could not even point to the properties it intended to acquire or invest in, which means that brokers, advisors, and investors would have difficulty evaluating the REIT. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. After the bankruptcy plan becomes effective, Brookfield will provide a $25 million exit facility. Brookfield . According to recent SEC filings, the board of Hospitality Investors Trust has approved an estimated net asset value (NAV) $9.21 per share for the companys common stock, as of December 31, 2018. Brokers who failed to conduct adequate due diligence or did not appropriately disclose the risk of HIT to their clients may be liable for the losses suffered as a result of their failure. Hospitality Investors Trust, Inc. is a publicly registered non-traded real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout .

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