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. Based on law firm verdicts and settlements exceeding $4 billion, our securities fraud lawyers are committed to seeking justice for the victims of investment fraud and misconduct. All too often, investors trying to exit or access their money are faced with two bad options: sell the shares directly back to the sponsor at a heavily discounted price or sell the shares for pennies on the dollar through the limited secondary markets. Login to Read More Join Now PrintFriendly Author: Martina Bellini You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. The White Law Group continues to Hospitality Investors Trust, Inc. (HIT REIT) 2021 Lawsuit *UPDATED* Did your broker recommend an investment in Hospitality Investors Trust Blog, Current Investigations, Securities Fraud. HIT REIT Hospitality Investors Trust Losses update April 8, 2021 Possible bankruptcy Have you suffered losses investing Securities Investigation Hospitality Investors Trust Inc. Are you concerned about Hospitality Investors Trust Inc. losses? If you suffered financial loss because your broker recommended HIT or any other similar programs to you, you may have a right to file a claim to recover your losses. Shares of the Healthcare Trust REIT were originally priced at $25 per share. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. 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. Investors in REITs hope to profit from regular cash distributions from the REITs income. Joe Peiffer, Responsible Attorney. 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. Now, Hospitality Investors Trust REIT investors have suffered significant losses. The trust doesnt have enough cash to fund its duties, and Brookfield, its largest investor, might be its only source of additional liquidity, the publication reported. The contingency fee amount is determined by the type of case, our estimate of how long it will take to resolve your case, and our estimate of the litigation costs we will advance in your case. This field is for validation purposes and should be left unchanged. All Rights Reserved. Typically, we represent clients on contingency fee agreements. Thousands of investors who were sold HIT have suffered severe losses. Healthcare Trust Inc. - HTI - Shareholder Lawsuits - The White Law Hospitality Investors Trust, Inc. - HIT REIT Last April we reported that the REIT entered into forbearance agreements with the lenders under certain of its mortgage and mezzanine indebtedness. 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. The Company operates as a public, non-traded real estate investment trust ("REIT"), meaning that it is: "public" because it is registered with the 7:18 pm Healthcare Trust REIT Lawsuits | Recover Your AR Global REIT Losses If you invested in HIT REIT and have lost part of your investment, not received your distributions, or remain stuck in the uncertain REIT, you may be eligible for monetary recovery. 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 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 company's common stock, as of December 31, 2018 . Hospitality Investors Trust Inc (HIT REIT), formerly known as American Realty Capital Hospitality Trust (ARCHT), is a registered non-traded real estate investment trust. Drawn to recommending this REIT because of the high commissions associated with the transaction, brokers and financial advisors made unsuitable recommendations to many clients who lost a lot of money. Annual Meeting/Annual Report | HIT REIT PDF ARC Lawsuit - The DI Wire HIT filed for Chapter 11 bankruptcy in May 2021, according to a report by The DI Wire. Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. Did your Advisor Recommend a Hospitality REIT? 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. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. New Orleans, LA 70130 Are you concerned about Hospitality Investors Trust Inc. (HIT REIT) losses? Hospitality Investors Trust is under forbearance with its mezzanine loan lenders until June 30, according to Bloomberg News. Firms that fail to do so, may be held responsible for any losses. The British-born chef reportedly flew home early from Rome, leaving his wife Lauren Fried, and their two young children, Alfie, five, and Isla, two, in the Eternal City. Because no public trading market for our shares currently exists, the document warns, it will be difficult for our stockholders to sell their shares and, if our stockholders are able to sell their shares, it will likely be at a substantial discount to the public offering price.. 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. The asset management company holds all $441 million worth of its preferred equity. Hospitality Investors Trust REIT and its operating partnership filed petitions for bankruptcy and investors are filing lawsuits to recover losses. You should consult an attorney for individual advice regarding your own situation. Shareholders of the common stock will receive one CVR in exchange for each shareof commonstock. After all, the hospitality industry has taken a major hit during the pandemic. Hospital Investors Trust has faced a steady decline in its price in the last few years which has been further exacerbated on account of the impact of Covid-19 from March 2020 onwards. 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. Epiq 11 Brookfield has also reportedly agreed to provide a $65 million debtor-in-possession term loan to fund the REITs current obligations, including up to $10 million to fund interest payments and other approved expenses for the property-level mortgage loans, pending the Chapter 11 cases. On May 19, 2021, Hospitality Investors Trust, Inc. ("HIT") and its operating partnership, Hospitality Investors Trust Operating Partnership, L.P. (the "OP" and, together with HIT, the "Debtors," and, together with their subsidiaries, the "Company"), entered into a restructuring support agreement (the "RSA") with Brookfield Strategic Real Estate The maximumamountof payments made per CVR will not exceed$6.00and will not be transferable, except in limited instances such as the death of the holder. 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. Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. Questions about our fee agreements are welcomed and encouraged. 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. Read more about what judges say about us. Contact us today for a FREE consultation. If so, you may be able to participate in a lawsuit. 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 . 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. Brookfield hotel REIT sues insurers for denying pandemic claims 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. 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 . If you are interested in a free and confidential case review, contact us at (800) 277-1193. 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. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. Healthcare Trust Inc. REIT Lawsuits - Compensation & Help Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. 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. Hospitality Investors Trust, Inc. is a real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout North America within the select service markets of the hospitality sector. She received her law degree from American University in 2005. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? Below are some of the emails and letters that our clients have sent us. Entering text into the input field will update the search result below, high risk non-traded REITs, like HIT REIT. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. Healthcare Trust Inc. was originally known as American Realty Capital Healthcare Trust II, Inc. Healthcare Trust was a high risk investment, and it should have only been recommended to investors who could afford a complete loss of their investment. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Is this happening to you frequently? If you are one of these investors, we encourage you to reach out to one of the experienced investment fraud lawyers at Haselkorn & Thibaut for a no-charge assessment of your case for a potential claim for recovery of your losses. Jock Zonfrillo found dead after flying back from family holiday in Hospitality Investors Trust Commences Bankruptcy Case Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Moreover, we will do our best to keep you updated and manage expectations along the way. These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. HIT REIT Hospitality Investors Trust Losses update April 8, 2021 Possible bankruptcy Have you suffered losses investing (312) 238-9650 | Fax (312) 238-8950 | (888) 637-5510 | 125 S. Wacker Drive, Suite 300, Chicago, Illinois 60606The information you obtain at this site is not, nor is it intended to be, legal advice. Investors are unlikely to recover much of the money they invested. According to the REITs website, the company owns a diversified portfolio of strategically-located hotel properties throughout the United States within the select service market of the hospitality sector. Shares in the REIT were originally sold at a price of $25/share, but their value declined in subsequent years. According to Central Trade & Transfer, a secondary market for non-traded REITs, shares of HIT REIT sold on March 31, 2021 for just $0.46 per share. Hospitality Investors Trust investigation, Hospitality Investors Trust recovery options, Hospitality Investors Trust secondary sales, FINRA Lawsuit filed against Cetera Advisors. Investor Alert: Hospitality Trust Investors Bankruptcy The White Law Group, LLC Announces Potential Securities In May 2021, The Hospitality Investors Trust filed for Chapter 11 bankruptcy protection, which will almost certainly result in investors losing all or most of their principal. 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. All copies must include this copyright statement. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. Hospitality Investors Trust REIT Investigation - Class Actions Lawsuits Federal judge in our Chase lawsuit (resulting in $100 million settlement): They fought tooth and nail, down to the wire to achieve the best settlement that they could under the circumstances.. This means that investors could have suffered over 95% losses on their investment, or even worse. 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. Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. Hotel REIT Preps Deal to Give Brookfield Control in Bankruptcy The estimated current value of a share based on limited secondary trading values is less than $1, and HIT has now filed for bankruptcy. 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. Contact our firm to learn more about your options. 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. In this case, the REIT is not traded on the exchanges. This may be years after you have made your investment. HIT REIT Losses Updated May 5, 2020 - The White Law Group The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. Hospitality Investors Trust (HIT) REIT Files Bankruptcy - Investor Alert If you have an ad-blocker enabled you may be blocked from proceeding. If you invested in HIT REIT, Contact Peiffer Wolf for aFREE CONSULTATIONby calling585-310-5140of by filling out aContact Formon this website. The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. Hospitality Investors Trust is a publicly registered, non-traded real estate investment trust whose initial offering became effective in 2014 and which declared bankruptcy in 2021. Then, during a HIT REIT quarterly investor presentation in April of 2018, the company reported. Class-action lawsuit accuses six hotel companies of antitrust tactics The troubled Hotel REIT declared bankruptcy on May 19, 2021 after its unstructured debt ballooned to $1.3 billion, according to its filing. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. 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 and Vero Beach, Florida. Shares were originally sold to most investors at $25 a share. Get Free Stock Picks, Macro Market Events & Options Strategies. HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. They are illiquid investments, which means that if you need to sell an asset to raise money quickly, you may not be able to do so with shares of a non-traded REIT. Moreover, it can be difficult to determine the value of a share of a non-traded REIT. Hospitality Investors Trust (HIT) Lawsuits - Compensation & Help The company attributed the decline not only to lower occupancy rates and higher labor costs, among other industry trends, but also to the companys sale of 20 properties that had been included in its prior NAV estimate and to lower estimated sale prices for properties under contract to be sold as compared to their corresponding estimated value included in the previous NAV calculation.. HIT was originally a blind pool offering, further making the investment highly speculative. The bankruptcy court must enter a confirmation order no later than June 23, 2021. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, has filed for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. It owns a portfolio of a hundred properties across 29 states in the US. This law blog website is managed by MileMark Media. Please. The recent filing by HIT REIT for bankruptcy protection in United St only increases the 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. According to the filings, each share of Hospitality Investors Trust common stock outstanding is cancelled and exchanged for a right to receive contingent cash payments (CVR). Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim. 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. The company notedthat it was trying to preserve liquidity in response to the coronavirus pandemicand in conjunction with actions taken by the companys franchisors temporarily suspending obligations of hotel owners to perform capital improvements and fund capital reserves,according to SEC filings. This meant that the fund had not had any net income and did not own any properties. Our contingency fee agreements are usually based on a percentage of the amount we recover for our clients. Hospitality Investors Trust REIT Lawsuit Investigation - Gibbs Law Group 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. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. There are two types of REITs: publicly traded and non-traded. In January 2014 sales activity continued under the companys name, but was suspended in November 2015. Hospitality Investors Trust REIT was formed in July 2013 by AR Capital, a now-infamous company in the non-traded REIT space that has sponsored over $20 billion in deals. Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. NEW YORK . Shareholders of the common stock will receive one CVR in exchange for each share of common stock. For example, the Trust charged 10% of the investment for selling commissions and dealer manager fee. Hospitality Investors Trust is a publicly registered, non-traded real estate investment trust whose initial offering became effective in 2014 and which declared bankruptcy in 2021. Unfortunately, many of the investors didnt even know the loss because they were both unaware of the risks of the investment and it is not traded on the exchanges. We have a national team of attorneys and staff who look forward to speaking with you. 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. Hospitality Investors Trust Losses - Investigation - The White Law Group We provide confidential and free initial consultations and case reviews. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. Central Trade & Transfer announced a selling price of 46 cents per HIT share in March 2021. These loans have an interest rate of 15% per year. The White Law Group announces the filing of FINRA Lawsuit involving High Risk Non-Traded REITs and BDCs The White Law Group announces the Have you suffered investment losses in a Hospitality (Non-traded) REIT? Shares were originally sold to most investors at $25 a share. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders. HIT is a non-traded REIT. Contact us now for a free consultation! Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. Shares were originally sold for $25.00 each. The company has yet to declare a Net Asset Value for 2020, but as of December 31, 2019, it was $8.35 per share, a 9.3% decrease from the 2018 NAV. If your financial advisor did not fully and/or accurately disclose the risks associated with an investment in HIT, including the products illiquidity and its stakeholders conflicts of interests, you may be entitled to a recovery. Written by The White Law Group December 12, 2021 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. Speak with one of our securities attorneys to learn more about recovering your losses.
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