Healthcare Trust Inc. is a publicly registered non-traded REIT (real estate investment trust) that was sponsored by AR Global. Healthcare Trust Inc. was originally known as American Realty Capital Healthcare Trust II, Inc. Healthcare Trust was a high risk investment, and it should have only been recommended to investors who could afford a complete loss of their investment. Brokers and brokerage firms who did not conduct appropriate due diligence or unsuitably recommended their clients invest in Healthcare Trust Inc. may be liable for losses suffered by investors
Shares of Healthcare Trust Inc. REIT could be worth as little as $5 or less. Shares of Healthcare Trust Inc. originally sold for $25.00 per share. According to trading data from secondary market sources, shares of Healthcare Trust Inc. REIT have sold for as little as $5 per share or less in 2021, which would represent an 80% decline from the initial share price. According to DI Wire the most recently declared net asset value was $14.50 per share. Even if the NAV was accurate, this could represent a decline of over 40% of the investor’s principal. Whether the loss is 40% or 80%, such a loss is a devastating decline particularly compared to the broad stock markets or even diversified traded REIT Index Funds both of which have experienced significant gains over the same time period.
Healthcare Trust Inc. was originally offered as an emerging growth company. As such, it was subject to significant risks including:
- Brokers who sold the investment and the dealer managers received upfront fees or commissions of 10% of the investor’s investment. Once AR Global’s offering expenses and other fees were factored in, only approximately 86.7% of the investors money actually went towards investing in properties.
- Healthcare Trust had a limited operating history
- No public market existed for shares of their common stock and the invest could remain illiquid indefinitely
- According to the offering materials AR Global admitted it “established the offering price on an arbitrary basis; as a result, the actual value of your investment may be substantially less than what you pay”
- There were substantial conflicts among the interests of our investors, our interests and the interests of our advisor, sponsor, dealer manager and our and their respective affiliates, which could result in decisions that are not in the best interests of our stockholders. This included the fact that AR Global was the sponsor of nine other publicly offered programs.
Investments in Healthcare Trust Inc. REIT were not suitable for all investors. Advisors who recommended their clients to invest in Healthcare Trust Inc. REIT or other similar investments may be liable for losses suffered by the clients. Under the FINRA Rules brokers and advisors are required to conduct reasonable due diligence and are only permitted to recommend investments that are suitable for the client’s risk tolerance and needs. Further, brokers are required to fully and accurately describe the risks and rewards of the investments they offer. Thus, brokers who misrepresent the investments, or recommend unsuitable investments may be liable for losses suffered.
If your advisor recommended any Healthcare Trust Inc., you may have a legal right to bring a claim to recover your losses. We represent investors on a contingency fee basis, meaning there are no upfront costs or fees to you. We may be able to file a FINRA Claim to recover damages you suffered due to the negligent or unsuitable recommendations from your broker. You can contact attorney Michael Bixby directly at Mbixby@levinlaw.com to discuss your potential claim, or fill out an evaluation form or give us a call and we will provide a complimentary review of your potential claim.
What Our Clients Say
Below are some of the emails and letters that our clients have sent us.
At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
My husband and I were very pleased with the work that Peter and his team provided. He was very knowledgeable of the circumstances of our case and kept us informed throughout the process. He is extremely qualified and worked diligently on our behalf. We are positive that this case would not have been resolved in our favor had it not been for Peter's expertise and his passion. He definitely cares about his clients and we sincerely appreciate his efforts. Rachel C.
FRS is a governmental body. FRS retained the services of Peter Mougey of the LP law firm in a multimillion dollar lawsuit involving extremely complex issues. Mr. Mougey quickly mastered the issues and gave advice that was vital in bringing about a successful resolution. Two of the most important features of Mr. Mougey’s representation was his understanding of government and his ability to communicate complicated legal concepts to a 10-member board of trustees in language that was easily understood by all. I did not know Mr. Mougey before FRS retained him and, fortunately, have not experienced circumstances where the system would need his services again. However, if needed, I would have no hesitation in retaining his services again. Please let me know if you need any additional information or assistance. Steven S.
Edison's famous adage can't ever be ignored of course: 1 part inspiration and 99 parts perspiration. However the two attitudes must be present indissolubly--both are essential--if results are to be obtained. Peter Mougey’s group is aware of such a requirement, they work very hard at the latter, and the former comes easily to them, a rare combination anywhere to be found indeed. Raphael B.
I would like to express my sincere gratitude to Peter Mougey and your entire team on behalf of my family for the amazing job done during your representation. From day one I received kindness, rapid responses to all of my questions, with polite and patient encounters with all of your staff assistants. You are the best- and I will be eternally grateful to you and your entire team. Michelle E.