Did you lose money investing in InvenTrust Properties (f/k/a Inland American Real Estate Trust)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in InvenTrust Properties (f/k/a Inland American Real Estate Trust), a publicly registered non-traded real estate investment trust, at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the broker-dealer and/or registered representative that recommended the investment.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
UPDATE 8/25/2020: MacKenzie Capital Management has launched an unsolicited tender offer to purchase up to 1.5 million shares of InvenTrust Properties for $0.83 per share. The tender offer expires on September 25, 2020. InvenTrust Properties recently recommended that stockholders reject MacKenzie’s offer and not tender their shares.
UPDATE 6/15/2020: InvenTrust Properties has suspended its share repurchase program and distribution reinvestment plan until further notice. In addition, the REIT signaled possible “future changes to its distribution rate, share repurchase program, and the dividend reinvestment plan.” The suspensions will go into effect on July 11, 2020. Beginning with the distributions previously authorized by the board for June 2020, which are paid in July 2020, any stockholder receiving their monthly distribution through the DRP will now receive a check or distribution statement showing their monthly distribution. The suspension of the DRP will not affect the payment of distributions to stockholders who previously received their distributions in cash, the company said. According to a letter to shareholders, InvenTrust plans to redeem shares on June 27, 2020 for shareholders currently in queue. However, the company does not anticipate having sufficient funds to redeem shareholders from the “general” category. All SRP requests will remain in the queue in the event that InvenTrust reinstates the SRP, the company said.
UPDATE 4/10/2020: InvenTrust Properties (f/k/a Inland American Real Estate Trust) will not publish an estimated net asset value per share of its common stock in May of 2020 due to increased uncertainty related to the financial impact of the coronavirus (COVID-19). InvenTrust Properties’s previously NAV per share value was $3.14 as of May 1, 2019.
UPDATE: MacKenzie Capital Managment has made an offer to purchase shares of InvenTrust for $1.25 per share, significantly less than investors originally paid for the investment.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
What are Real Estate Investment Trusts (REIT)?
A Real Estate Investment Trust (“REIT”) is a complex investment that is generally only suitable for sophisticated high-net worth investors, and then only in certain circumstances. A REIT is an entity that owns, and may also manage, income producing real estate. REITs pool capital from multiple investors and use it to purchase properties, similar to mutual funds and other pooled investment vehicles.
A Real Estate Investment Trust can be offered in several different forms. A Public Exchange Listed REIT is registered with the U.S. Securities and Exchange Commission (“SEC”) and is publicly traded on a national securities exchange. A Public Non-Listed REIT is registered with the SEC, but does not trade on a major securities exchange. Finally, a Private REIT, also known as a private-placement REIT, is not registered with the SEC and does not trade on a national securities exchange.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
InvenTrust Properties (f/k/a Inland American Real Estate Trust) Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as InvenTrust Properties (f/k/a Inland American Real Estate Trust), and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as InvenTrust Properties (f/k/a Inland American Real Estate Trust), or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in InvenTrust Properties (f/k/a Inland American Real Estate Trust) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
