NYC Shareholders see Huge Losses after a 2.43-to-1 reverse split
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended New York City REIT(NYC) (formerly known as American Realty Capital New York City REIT) to investors.
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. Unfortunately 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.
For example, if an investor originally purchased 1,000 shares of the REIT with a value of $25,000, after the reverse stock split, the number of those shares was reduced from 1,000 to 412. That means the client who invested $25,000 now has an investment worth close to $5,000, a deep decline of 80%.
NYC’s shares closed at $11.13 per share yesterday, according to Market Watch.
Recovery of NYC Investment Losses
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. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
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.
Filing a Complaint against your Brokerage Firm
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 and Franklin, Tennessee.