NEW YORK, Nov. 17, 2020 (GLOBE NEWSWIRE) -- Fitapelli Kurta, a national law firm that represents investors in securities litigation matters, announces the filing of an arbitration against National Securities Corporation concerning the marketing and sale of New York City REIT.
Between 2013 and 2017, numerous broker-dealers, including National Securities Corporation, marketed New York City REIT to retail customers. At the time, the investment was called American Realty Capital (ARC) New York City REIT and was not traded on any public exchange. The fact that the investment was originally non-traded was significant for two reasons. First, it meant that the investment was exempt from the normal disclosure requirements of the Securities and Exchange Act - disclosures that are legally mandated for all publicly traded investment. Second, because the investment was exempt from providing certain disclosures to investors, it could only lawfully be sold to "accredited investors," who were able to satisfy high income thresholds. "These investments should only be sold to wealthy investors and not retirees seeking to supplement their retirement income," explains attorney Marc Fitapelli.
According to Marc Fitapelli's partner, attorney Jonathan Kurta, "based on our investigation, many retail clients who purchased ARC NYC REIT were not accredited and should have never been offered this product." Even if these individuals were accredited, Jonathan Kurta explains, the motivation for the recommendation was clear - fees and commissions. Ultimately, according to attorney Jonathan Kurta, "the broker-dealers who sold ARC NYC REIT as a non-traded REIT all must explain why this particular REIT was chosen over the seemingly endless number of lower cost REITs that were publicly traded."
Almost immediately after going public in the summer of 2020, NYC REIT also announced a 2.43 to 1 reverse split. The price of the REIT crashed shortly thereafter and is currently trading at approximately $10.00 per share. According to attorney Marc Fitapelli, "an investor who purchased 1,000 shares in 2015 had an initial value of $25,000, but after the reverse split, the number of shares would have decreased from 1,000 to 442 with the original $25,000 investment worth only $4,420 - a loss of more than 80%." The losses are staggering.
If you lost money investing in American Realty Capital (ARC) NYC REIT, you may be able to recover your investment losses. Contact attorneys Marc Fitapelli or Jonathan Kurta at 212-658-1500 or firstname.lastname@example.org to discuss this matter further.
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Marc Fitapelli, Esq.
Jonathan Kurta, Esq.
28 Liberty Street, 30th Floor
New York, New York 10005