Invest in New York City REIT (NYSE: NYC)? The White Law Group may be able to help you to recover your financial losses.
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended New York City REIT (formerly known as American Realty Capital New York City REIT) to investors.
Unfortunately New York City REIT shareholders are seeing huge losses after a 2.43-to-1 reverse split in July and an August listing on the Nasdaq — as much as 80% from the initial sales price.
NYC’s shares closed at $8.74 per share yesterday, according to Market Watch.
New York City REIT, was launched in 2014 as a publicly registered non-traded real estate investment trust, sponsored by AR Global. The REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan.
New York City REIT is one of several REITs sponsored by AR Global, formerly known as American Realty Capital, which was involved in a major accounting scandal in 2014. American Realty Capital Corp., now known as Vereit inc. settled a class action lawsuit for $738.5 million after its chief financial officer and the former chief accounting officer were reportedly convicted of allegations of fraudulently inflating financials.
In addition to Vereit’s hefty settlement, AR Global paid $286 Million to settle the charges.
The White Law Group has represented numerous investors who suffered financial losses investing in AR Global REITs. For more information on the firm’s investigations, please see the following:
Hospitality Investors Trust, Inc. (HIT REIT) 2021 Update
Healthcare Trust Inc. (HTI) – Decrease in Net Asset Value
American Finance Trust (AFIN) Investment Losses
Vereit Inc. Settles Class Action Lawsuit for $738.5 Million
Risks of Non-Traded REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, are considerably more complex and involve a high degree of risk. Non-traded REITs are rarely, if ever, are suitable for short-term investors and even long-term investors must be willing to bear the risks of illiquidity.
Potential Lawsuits to Recover your Investment Losses
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 in line with 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 through FINRA Arbitration.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
If you suffered losses investing in New York City REIT (NYC), The White Law Group may be able to help you by filing a complaint against your brokerage firm. To speak to a securities attorney about the potential to recover your investment losses, please call 1-888-637-5510 for a free consultation. For more information, please visit www.whitesecuritieslaw.com.
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.