The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm investigating potential sales practice violations by financial advisors who were recommending DHC and related real estate investment trust (REIT) securities to investors. The recent trading in DHC has been in the $3.00/share range. Looking back, DHC began 2020 in the $8.00/share range.
Diversified Healthcare Trust (NASDAQ: DHC) – (formerly known as Senior Housing Properties Trust) is a real estate investment trust, or REIT, that owns medical office and life science properties, senior living communities and wellness centers throughout the United States. DHC is managed by the operating subsidiary of RMR Inc., an alternative asset management company that is headquartered in Newton, MA.
DHC Lawsuit “FINRA”
The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm (www.investmentfraudlawyers.com) investigating potential sales practice violations by financial advisors who were recommending DHC stock and similar REIT-related securities sold to investors.
For investors, this is a particularly harsh blow as these are the types of investments that were often recommended by financial advisors to clients who were looking for income in their portfolios (often retirees or similarly conservative investors). This was likely a recommendation that was expected to be low volatility and reasonably conservative, now investors are faced with substantial losses as a result of a level of risk to their original investment principal that was probably never correctly disclosed (if it was ever disclosed at all) by their financial advisors.
As some strategies are leveraged in the hopes of increasing potential returns, they also increased the level of risk, and some investors may not have been advised of those inherent risks as well. Although Financial advisors may claim that these were unforeseen market events, the reality is that these are similar risks to those experienced in the 2008-2009 financial crisis. These potential risks were material risks that should have been appropriately disclosed to clients before recommending these investments individually or as part of a portfolio or investment strategy.
Many of these investments were sold by financial advisors without proper risk disclosures, as these are considered very risky and complicated (some even speculative because of the leverage) securities. In cases where these were recommended to retirees or similar conservative income-seeking investors there is the potential for sales practice abuse as a result of misrepresentations, but more often as a result of omissions of material fact, or due to a lack of proper supervision.
Investors Seeking to Recover DHC Losses
For some investors, a private FINRA arbitration customer dispute enables them to bring a claim and potentially recoup their DHC investment losses. These customer disputes typically involve only paper discovery and no depositions, and they are generally faster and more efficient compared to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently. Read more – Can You Sue Your Financial Advisor?