Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.
Our firm is investigating possible legal claims on behalf of investors in Benefit Street Partners Realty Trust and Business Development Corporation of America (BDCA).
Benefit Street Partners, a non-traded real estate investment trust (REIT), conducted its initial offering at $25 per share. Since then, the price of the REIT has decreased substantially; reaching an estimated net asset value of $18.57 per share as November 2019.
This decrease in price may have significantly harmed shareholders. If you are a Benefit Street or BDCA investor, speak with one of our securities attorneys about recovering your losses.
Invest in Benefit Street Partners REIT?
You may have a claim. Get a free and confidential consultation.
Benefit Street REIT News: Price Drops, Distribution Re-Investment Plan Suspended
Benefit Street Partners Reality Trust, formerly known as Realty Finance Trust, is a non-traded real estate investment trust (REIT). This REIT had declined approximately 25% from its initial price as of September 2018.
Additionally, some investors may have limited ability to exit their investment after the price drop. For example, investors may be limited in both time and scope in redeeming their shares from the company for cash consideration. According to Benefit Street’s Form 10-K,
Repurchases pursuant to the [share repurchase program] generally will be made semiannually… Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year… Due to these limitations, we cannot guarantee that [we] will be able to accommodate all repurchase requests.
REIT Distribution Re-Investment and Stock Purchase Plan Suspended
In March of 2020, Benefit Street Partners suspended its distribution reinvestment and stock purchase plan (DRIP). This suspension, effective immediately, means that shareholders will no longer be able to re-invest their distributions, and will receive future distributions in cash. According to The DI Wire, the company did not disclose a reason for the suspension in its filing with the Securities and Exchange Commission (SEC).
Investors in Benefit Street Partners may have a claim. Speak with a lawyer to learn more about your options.
The Dangers of Non-Traded REITs
While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result.
If you invested in the Benefit Street REIT and have lost part of your investment, not received your distributions, or remain stuck in the uncertain REIT, you may be eligible for monetary recovery. Contact our firm to learn more about your options.
Business Development Corporation of America
Business Development Corporation of America (BDCA) is a non-traded business development company managed by Benefit Street Partners.
Investors in BDCA may be have incurred substantial losses. In its Q2 2019 Investor Presentation, the BDCA estimated its net asset value at $7.97 per share as of June 30, 2019. This is lower than the NAV of $8.58 estimated on September 30, 2016. Additionally, some tender offers have offered purchases of shares for a much lower value.
If you are a BDCA investor and have incurred substantial losses, or feel stuck in an uncertain investment, you may be eligible to recover your losses. Speak with an attorney for more details.
Our REIT Lawsuit Investigations
Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. These REITs include:
- Northstar Healthcare Income REIT
- Hospitality Investors Trust REIT
- FS Credit Real Estate Income Trust–I
- The Parking REIT
- Cole Credit Property Trust III (“CCPT III”)
- Apple non-traded REIT
If you invested in any of these REITs, or others, we may be able to help. Speak with a lawyer today to learn more.
Our Securities Lawyers Have a Winning Record Against the World's Largest Companies Like Benefit Street
Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.
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They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”
Read more about what judges say about us.
Our Featured Securities Attorneys
Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others.
Eileen is involved in the firm’s securities practice and has over a decade of experience in the legal world. She received her law degree from American University in 2005.
David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.
Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.
Our Financial Fraud Experience
Gibbs Law Group
Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. The firm has successfully litigated against some of the largest companies in the United States, and has recovered more than a billion dollars on clients’ behalf.
Gibbs Law Group attorneys have fought some of the most complex cases brought under federal and state laws nationwide, and have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).
Silver Law Group
Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation.
The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Scott is admitted to practice in New York and Florida and the firm’s FINRA arbitration attorneys represents investors nationwide.
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