The White Law Group Files Another Lawsuit Involving Hospitality Attorney Advertising. 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 lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. 4:25 pm There were numerous conflicts of interest within the trust. Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy Broker dealers are required to perform adequate due diligence on any investment they recommend. Eileen is involved in the firms securities practice and has over a decade of experience in the legal world. A prospectus filed with the Securities and Exchange Commission by American Realty Capital Hospitality Trustthe entity now known as Hospitality Investors Trustin 2014 states that investments in the REITs common stock involve a high degree of risk. One of the primary risks described by the prospectus is the investments illiquidity. Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. 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. 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 continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. 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? The trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products. 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. 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. Are you concerned about Hospitality Investors Trust Inc. (HIT REIT) losses? For more information on its investigation please see the following: American Realty Capital Hospitality Trust Inc. Changes Name to Hospitality Investors Trust Inc. Hospitality Investors Trust Decreases NAV close to 40%, Hospitality Investors Trust (HIT REIT) Investment Losses, Bankruptcy updated. 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. Firms that fail to do so, may be held responsible for any losses. Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. Brookfield . Real estate investment trusts (REITs) are. If your broker suggested Hospitality Investors Trust REIT, and it was not an appropriate investment for you, you may be eligible to file a class action. Shares were originally sold for $25.00 each. has handled claims involving HIT REIT and other similar products and can help you fight to recover your losses. The REIT stopped all distributions in 2017. Investors are unlikely to recover much of the money they invested. This field is for validation purposes and should be left unchanged. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. 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. Recover Your Losses on Hospitality Investors Trust REIT Hospitality Investors Trust to be acquired by property giant through bankruptcy, Photo illustration of Brookfield Property Partners Brian Kingston (Brookfield, iStock). Shares were originally sold for $25.00 per share. Epiq 11 Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Blog, Current Investigations. The REITs bankruptcy plan involved the cancellation of common stock shares in exchange for shareholders right to receive nontransferable contingent cash payments not to exceed $6/share. The risks materialized and HIT REIT filed for bankruptcy in May 2021. Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. 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. In this case, the company attributed the decline to declining occupancy rates in the hospitality industry, higher labor and other costs, and increased hotel supply in certain markets which has further driven down the companys occupancy and rate estimates., Hospitality Investors Trusts NAV declined again in 2019. Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time.

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