Eagle Hospitality REIT Securities Investigation
The White Law Group is investigating the liability that brokerage firms may have for improperly selling high-risk investments, like Eagle Hospitality REIT, to its clients.
Eagle Hospitality Trust is a “hospitality stapled group comprising Eagle Hospitality Real Estate Investment Trust and Eagle Hospitality Business Trust,” according to its website. The REIT was established with the principal investment strategy of investing on a long-term basis, in hospitality and/or hospitality-related real estate, focused on the United States, according to its website.
With close to $1 billion in liabilities, Eagle Hospitality Real Estate Investment Trust and 27 subsidiaries reportedly filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the District of Delaware on January 18, 2021. At least 15 hotels owned by subsidiaries joined the bankruptcy petition, according to an article in LevelSet.
Eagle Hospitality Trust, a subsidiary of CI Hospitality Investments, owns 18 hotel properties across nine states. As of December 2018, the real estate investment trust valued its hotel portfolio at $1.27 billion.
Potential Lawsuits to Recover Financial Losses
Unfortunately, some brokers may downplay the risks associated with alternative investments. They may have misled investors into thinking that they are “safe” investment products. The high sales commission brokers earned for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors.
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.
If a broker misleads a client or makes unsuitable investment recommendations they can be liable for investment losses.
Recovery of Investment Losses
If you are concerned about your investment in Eagle Hospitality REIT, the securities attorneys at The White Law Group may be able to help. Please call the offices at 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.