Healthcare Trust of America (“HTA”) recently published a press release announcing the results of their “Dutch Auction” style purchase tender from existing shareholders following their June 6, 2012 initial public offering. Only those investors who bid at or below the IPO price of $10.10 saw a share of their current Class A holdings bought back at that price. That buy-back represented only 6.5% of the total shares outstanding of the HTA REIT. Those who bid over the $10.10 initial offering price were left with all their shares and only $150 million was available to purchase shares from those that did bid correctly. Remaining repurchases are limited to percentages of current holdings, keeping investors locked in for the near future.
Now, however, HTA shares have started to lose value. Since the initial offering of $10.10, share prices of HTA have dropped to $9.33 (NYSE: HTA as of 15:45 July 27, 2012). Future repurchases will be based on the current stock prices and if the REIT continues to decline, investors may suffer losses.
The White Law Group continues to monitor the impact the IPO will have on investors, including reviewing potential claims against the brokerage firms that recommending Healthcare Trust of America to its clients.
Brokerage firms have a fiduciary duty to perform due diligence on any investment before recommending it to their clients and to ascertain whether the investment is appropriate for the particular client in light of the client’s age, income, net worth, and investment experience.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky REIT investment, please contact The White Law Group at 312-238-9650 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 and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com. For more information on the HTA IPO, visit http://www.whitesecuritieslaw.com/2012/05/18/recovery-of-healthcare-trust-of-america-losses/ .