Recovery of BDCA Investment Losses Updated on May 4, 2020
Have you suffered investment losses in Business Development Corp. of America a/k/a BDCA? 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.
Business Development Corporation of America (BDCA) is a non-traded business development company that invests in first and second lien senior secured loans and mezzanine debt issued by middle market companies.
The company commenced its initial public offering in January 2011 and raised $1.9 billion before closing the offering in April 2015. The annualized yield for distributions was 7.78 percent based on its then public offering price of $11.15 per share.
Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, recently sold shares of BDCA for $4.00 per share. That’s significantly less than the original purchase price of $10.00 per share.
On March 30, The REIT reportedly suspended its distribution reinvestment and stock purchase plan, effective immediately. The company said that until it reactivates the DRIP, shareholders will receive any distributions in cash, including March 2020 distributions that are paid in April 2020. No reason was given for the suspension in a filing with Securities and Exchange Commission, but other non-traded REITs have recently made similar suspensions in response to the Covid-19 global pandemic.
The company indicated the suspension is temporary.
Investigating Potential Claims
The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments such as BDCA to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience.
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.
If you have suffered losses in BDCA and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 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 Franklin, Tennessee. To learn more about The White Law Group visit www.whitesecuritieslaw.com.
