Carey Watermark Investors (now known as Watermark Lodging Trust) Investigating Potential Lawsuits
Are you concerned about your investment in Carey Watermark Investors I or Carey Watermark Investors II? 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.
Carey Watermark Investors 1 and Carey Watermark Investors 2, two publicly registered non-traded REITs sponsored by W.P. Carey Inc. (NYSE: WPC), were reportedly formed to invest primarily in the lodging and lodging-related sectors.
According to a press announcement, the REITs have each temporarily suspended distributions due to the reduced travel and lodging demand and related financial impact due to the coronavirus (COVID-19) pandemic.
“The companies have experienced significant cancellations of individual rooms and group bookings and expect that they may continue to do so until the spread of the virus, or the fear of the spread, subsides,” according to the REITs. “In addition, government-imposed restrictions on travel and large gatherings have adversely affected the performance of the companies’ hotels in affected areas.”
The REITs reportedly announced in October 2019, plans to merge to create Watermark Lodging Trust, a $4.6 billion internally managed non-traded REIT. The transaction is expected to close in the first quarter of 2020, with the approval of stockholders.
The White Law Group is investigating potential securities claims involving FINRA registered brokerage firms who may have unsuitably recommended alternative investments such as Carey Watermark Investors REITs to investors.
These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors. They often have high fees and sales commissions, making them an attractive product for financial advisors to sell.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Free Consultation with a Securities Attorneys
If you are concerned about your investment in Carey Watermark Investors I or Carey Watermark Investors II, The White Law Group may be able to help. Please call 888-637-5510 for a free consultation with a securities attorney.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.