NorthStar Healthcare Income REIT Investor Sues Transamerica Financial Advisors Over Losses. Shepherd Smith Edwards and Kantas Non-Traded REIT Recovery Attorneys are Representing This Claimant In His Six-Figure Lawsuit
Real estate investment trusts (REITs) can be risky investments and they are not suitable for many retail investors and conservative retirees. In Financial Industry Regulatory Authority (FINRA) arbitration, Shepherd Smith Edwards and Kantas (investorlawers.com) is representing a Pennsylvania senior investor who is seeking up to $500K from broker-dealer Transamerica Financial Advisors over losses he sustained in REITs, such as NorthStar Healthcare Income REIT (NHI).
The claimant, as he was nearing retirement, entrusted part of his retirement savings to the broker-dealer and one of its registered representatives. Unfortunately, instead of giving him prudent investment advice, his Transamerica Financial Advisors broker unsuitably recommended risky products, including non-traded REITs.
Meanwhile, this Transamerica Financial Advisors registered representative allegedly misrepresented the investment recommendations as safe and that the investor’s account was structured prudently to satisfy his investment goals. In fact, neither was true. Not only that, but entirely too much of our client’s assets were concentrated in REITs like NorthStar Healthcare.
In his REIT loss lawsuit, this retiree is alleging unsuitability, alleging a lack of supervision, misrepresentations and omissions, negligence, gross negligence, breach of fiduciary duty, and more. Our seasoned real estate investment trust fraud attorneys believe that as a result of poor investment recommendations, the investor sustained substantial losses.
Unfortunately, because privately-traded products tend to pay large commissions relative to traditional products, many financial advisors and brokerage firms will disregard a customer’s best interests or financial goals to recommend investments that are too risky, too illiquid, and not in line with their best interests.
Why Are NorthStar Healthcare Investors Suing Their Broker-Dealers?
Shepherd Smith Edwards and Kantas Non-Traded REIT Recovery Attorneys have been investigating the brokerage firms that marketed and sold NorthStar Healthcare Income, which owns senior housing property in the US. In its initial public offering in 2015 and follow-on offering in 2016, this non-traded raised $1.8B. The original offering price was $10/share. In 2019, NorthStar Healthcare’s Board stopped paying dividends.
NorthStar Healthcare’s net asset value (NAV) has been declining for years. Secondary market for non-traded real estate investment trusts Central Trade & Transfer at one point was selling NorthStar Healthcare shares for $1.01/share.
It was recently announced that Welltower Inc. (NYSE:WELL) would be acquiring NorthStar Healthcare Income in an all-cash transaction. Northstar shareholders are expected to be paid $3.03/share.
For some time now, NorthStar Healthcare Income REIT investors have alleged that they were never properly apprised that the distributions they were paid did not accurately reflect the returns on investments made by the non-traded real estate investment trust’s business operations. Some have contended they were unaware that part of the payments they received were, purportedly, a return of principal or even from a large loan.
NorthStar Healthcare REIT investors may not have been getting paid actual returns on their investments for years.
Contact Our Non-Traded REIT Recovery Attorneys Today
If you suspect your broker was negligent or ignored your investment wishes when promoting NorthStar Healthcare or any other non-traded REIT to you, we can help you explore your legal options.
We represent many investors who have sustained non-traded REIT losses that were caused even if just in part by broker misconduct or negligence. Due diligence failures and breaches of fiduciary duty by financial advisors occur more often than you’d think. Unfortunately, broker fraud also can be a problem.
We have the skills, resources, and knowledge to work with investors against the largest broker-dealers in the US. More than 90% of our clients have secured full or partial financial recovery.
Call our Non-Traded REIT Recovery Attorneys at (800) 259-9010 or fill out this form to schedule your free, initial case consultation.