November 12, 2015 Comments (0) Blog, Securities Fraud

Recovery of CNL Lifestyle Properties Investment Losses

(Last Updated On: November 12, 2015)

Have you suffered investment losses in CNL Lifestyle Properties Inc.? If so, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

The trouble with non traded REITS, like CNL, is that they are complex and inherently risky products. According to CNL’s prospectus , some of the risk factors included:

  • Our investment policies and strategies are very broad and permit us to invest in many types of real estate and to make loans and other investments
  • The agreement with our Advisor (the “Advisory Agreement”) was not negotiated at arm’s length and we will pay our Advisor and its affiliates substantial fees
  • Certain officers and directors of our Advisor also serve as our officers and directors, resulting in conflicts of interest. Those persons could take actions that are more favorable to other entities than to us
  • There is no market for our shares and we do not expect to list our shares in the near future. If you are able to sell your shares prior to listing, you would likely have to sell them at a substantial discount
  • Redemption of our shares shall be at our sole option
  • We may borrow up to 300% of the value of our Net Assets, which may reduce the cash available for distributions to stockholders

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 investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. According to LPsales.com, a secondary market for private placements, shares of CNL recently sold for $4.12 per unit in September 2015. This represents a significant loss for many investors.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of CNL Lifestyle Properties, please contact The White Law Group at (312) 238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.