Did you lose money investing in American Finance Trust (NASDAQ: AFIN) (f/k/a American Realty Capital Trust V)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in American Finance Trust (NASDAQ: AFIN) (f/k/a American Realty Capital Trust V) at the recommendation of their financial advisor. If you suffered losses, 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 6/5/2020: On April 13, 2020, the Company announced that its board of directors has approved a “short-term stockholder rights plan” to protect the long-term interests of the Company, citing the volatility in its share price. The Company says that the plan is designed to reduce the likelihood that any person or group (including a group of persons that are acting in concert) would gain control of the Company through open market accumulation of stock by imposing significant penalties on any person or group that acquires 4.9% or more of its outstanding stock without board approval. Shares of the former non-traded real estate investment trust originally sold for $25 each.
UPDATE 11/12/18: Plaintiff Carolyn St. Clair-Hibbard and other shareholders have filed a second complaint against American Finance Trust (AFIN), certain related entities, and majority owners, William M. Kahane and Nicholas S. Schorsh. American Finance Trust (AFIN) was a non-traded REIT (f/k/a American Realty Capital Trust V). The suit seeks to recover damages and rescind the merger between American Finance Trust (AFIN) and Retail Centers of America (RCA), as well as a second amended advisory agreement, and a third non-cancellable advisory agreement that the plaintiffs allege has erased share value and liquidity.
UPDATE 2/15/17: The shareholders of Retail Centers of America and American Finance Trust (AFIN) voted and approved the proposed merger transaction that was announced last September. American Finance Trust (AFIN) will acquire all of the outstanding common stock of Retail Centers of America at an exchange ration of 0.385 shares of American Finance Trust’s (AFIN) common stock per share of Retail Centers of America’s common stock, plus a cash payment equal to $0.95 per share of Retail Centers of America’s common stock.
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 2/2/17: Shareholder’s of Retail Centers of America have filed a class action lawsuit in the United States District Court for the District of Maryland. They are alleging that the Retail Centers of America’s officers and directors are soliciting shareholders’ approval of the proposed merger with American Finance Trust through a materially false and misleading proxy statement, and in breach of their fiduciary duties. They are demanding a jury trial.
UPDATE 1/4/17: On Tuesday, Robert A. Stanger & Co. blasted the proposed merger between American Realty Capital’s Retail Centers of America and American Finance Trust (AFIN) in a special report. In the report, Stanger outlined what it believes are serious issues with the proposed merger, including inadequate compensation to investors, an onerous 20-year post-merger management agreement with American Realty Capital, the elimination of investor protections, and potential conflicts of interest with the REITs’ respective financial advisors/bankers.
UPDATE 12/19/16: Retail Centers of America and American Finance Trust (AFIN) have postponed their respective special stockholder meetings to February 13, 2017 from January 25, 2017 during which shareholders will vote on the proposed merger that was announced in September.
UPDATE: MacKenzie Realty Capital, Inc. has made a tender offer of $16.50 per share. The offer would be a significant loss for many investors who originally paid $25 per share.
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.
American Finance Trust (NASDAQ: AFIN) (f/k/a American Realty Capital Trust V) Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as American Finance Trust (NASDAQ: AFIN) (f/k/a American Realty Capital Trust V), 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 American Finance Trust (NASDAQ: AFIN) (f/k/a American Realty Capital Trust V), 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 American Finance Trust (NASDAQ: AFIN) (f/k/a American Realty Capital Trust V) 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.
