Recently Northstar Healthcare’s board has allegedly performed a complete evaluation of the REIT’s business and financial condition and believes it is wise to protect the provider’s financial position by eliminating the dividend. InvestmentFraudLawyers.com has received many calls from investors from investors, fearing a 100% loss of their Northstar Healthcare investment.
As a result, we have started an investigation into the sales practices around this product and the business practices. Investors seeking to recover funds are limited by time and are encouraged to call 1-800-856-3352 for a free review of their case to recover losses.
Northstar Healthcare Income, Inc. initially sold shares at ten dollars. Originally the company was formed to start, purchase, and asset manage a diversified portfolio of equity, securities, and debt investments in health care real estate, raising some $2 billion between 2013-2018 and creating a portfolio of over six hundred properties.
Over a year and a half ago, Northstar reduced the dividend rate, cutting it by more than half at that time. Last October, the company informed investors it would only repurchase shares in relation to the death or qualifying disability of an investor. In December 2018 that the REIT reduced the net asset value (NAV) from $8.50 to a whopping $7.10 per share. They cited numerous factors contributing to that decline in value. The Northstar Healthcare Board has indicated that it intends to assess its financial health regularly. However, there is no guarantee that distributions (which are now suspended entirely) will be announced again in any future or any specific time.
Why Does Northstar Healthcare Dividend Reduction and Share Value Loss Matter to Investors?
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While most investors may have a small percentage of their portfolio exposed to Northstar such that any decrease money invested or the suspension of distributions, should not have a significant impact on their overall investment portfolio. Unfortunately, some financial advisors may have advocated unsuitable positions or over-concentrated investors. As a result, many investors may now find themselves with unnecessary losses. Investors may have purchased these and other investments based on materially false or misleading information, including the material omission of risk disclosures. In supervising these kinds of activities, the oversight, and monitoring of the broker who recommended such investments may have been improper action or negligent.
What’s “Asset Over Concentration”?
Over concentration is the definition typically used to describe the improper practice of an investment professional (broker or financial advisor ) recommending too much of one particular investment, one specific asset class, one specific sector or industry such that the recommendation may not be suitable for the investor as it’s putting”too many eggs in one basket.”
If Over-Concentrated in Northstar Healthcare – How Do You Recover Your Losses?
Typically, unsuitable investment recommendations will, in one way or another constitute a breach of securities regulations and the company’s compliance procedures by which its brokers/advisers must comply. In addition, such activities and the failure of the firm’s supervision, the management or compliance department to properly monitor and supervise the trades might be negligent as well.
Because of this, an experienced securities lawyer might be able to show how the recommendations were unsuitable for a particular investor and how a supervising firm might have been negligent in terms of supervision, direction, or compliance efforts related to the trades, or the ongoing monitoring of the overall investment strategy. An investment lawyer will have the ability to help an investor in possibly recouping losses from a firm by assisting you in demonstrating that the company mainly failed to properly set up or failed to implement reasonable supervisory procedures, or failed to appropriately follow up on red flags.
What Steps to Take to Try to Recover Your Losses
First, it is crucial to contact an experienced securities attorney to find out what solutions you have in recovering losses. A common thing many investors think is that because they haven’t sold the underlying investment, there’s no possibility of recovery of any losses. That is not always the case.
To recover losses, you’ll quickly need to take action. Depending on the situation and facts, this could entail filing a claim through FINRA’s Office of Dispute Resolution. Your potential for getting funds back may be directed against a terrible broker, or it could be indirect potentially, through the advisor or the firm that he worked for during the time of the investment.
Though some of the above points may appear dull on the surface, these kinds of FINRA claims can often be especially difficult or complicated. To hold the responsible broker or his company liable for your damages, you’ll have to research the entire extent of the potential negligence or misconduct. In a lot of cases, victimized investors have multiple different underlying legal claims, and an experienced securities lawyer can help you in considering all of your potential sources of recovery.
Based upon the facts of your situation, your lawyer may have the ability to establish liability or may be able to hold the broker or investment company responsible for its failure to supervise and control their representative. We are a national law firm and have over 40 years of securities industry experience. Call us today at 1-800-856-3352 for a case review.
