American Hospitality Properties REIT Investigating Potential Lawsuits
Are you concerned about your investment in American Hospitality Properties REIT? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Phoenix American Hospitality, a Dallas-based opportunistic hotel fund manager, reportedly sponsored American Hospitality Properties REIT, a Regulation A offering, to invest in limited and upscale select-service hotels in the United States.
Recovery of Investment Losses
Regulation A allows investors to buy securities in smaller companies in earlier stages of development. These early –stage companies are able to offer and sell unregistered securities to the public, but with more limited disclosure requirements than what is required for publicly reporting companies.
Although Regulation A may provide a unique opportunity for you to invest in a start-up company, it will also involve quite a bit of risk.
Investments in startups and early-stage companies are speculative and it is possible the businesses will fail. A start-up often relies on the development of a new business, product or service that may not find a market, unlike an investment in a mature business where there is a track record of revenue and income.
There is also the risk of illiquidity. You may have to hold your investment for an indefinite period of time, even if there is no resale restriction. Since the securities are not listed on an exchange, it may be difficult to find a buyer when you are ready to sell your investment.
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
If you are concerned about your investment in American Hospitality Properties REIT, please call the securities attorneys of The White Law Group at 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.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.