PHILADELPHIA and CLEVELAND, June 29, 2021 – The investor rights attorneys at Goldman Scarlato & Penny, PC law firm (“GSP”) are evaluating potential investment loss recovery options on behalf of investors who lost money in Hospitality Investors Trust Inc, previously known as American Realty Capital Hospitality Trust (“HIT REIT”), following HIT REIT’s recent bankruptcy filing. The GSP attorneys already represent other Hospitality Investors Trust REIT investors and have been pursuing claims on their behalf against securities brokerage firms that improperly recommended HIT REIT and other problematic investments to their customers.

HIT REIT has filed for Chapter 11 bankruptcy in the District of Delaware Bankruptcy Court in May 2021. According to its voluntary petition, HIT REIT was seeking to restructure $1.3 billion in unsecured debt. On June 23, 2021, the Court approved HIT REIT’s restructuring plan.

HIT REIT was created in 2013. It was sponsored by Nicholas Schorsch’s AR Capital. In 2017, AR Capital’s CFO Brian Block was sentenced to prison in connection with alleged accounting improprieties. Two years later, AR Capital, Schorsch, and Block were charged by the Securities and Exchange Commission with violations of the securities laws and improper conduct. Thereafter, AR Capital agreed to pay $60 Million to settle the Commission’s charges.

HIT REIT Investors May Have Options

GSP investor rights attorneys Alan Rosca and Paul Scarlato have been investigating this matter and are preparing to seek compensation on behalf of HIT REIT investors from stockbrokerage and investment advisory firms that recommended HIT REIT to their customers. Investors in HIT REIT may contact attorneys Alan Rosca or Paul Scarlato for a free, no-obligation evaluation of their options at 888-998-0530, arosca@rscounsel.law or by leaving a message on https://investorlawyers.org/hospitality-investors-trust-hit-reit-investor-center/.

The GSP investment fraud attorneys have decades of combined experience representing investors who lost money as a result of investment fraud. They are evaluating potential options on behalf of HIT REIT investors. They take most cases of this type on a contingency fee basis and advance the case costs. There are typically no fees or costs if no recovery.

Visit https://investorlawyers.org for more information about the firm and GSP attorneys’ background and admissions to practice law. This release may be deemed to include Attorney Advertising. There has been no finding of liability as to the allegations herein. © GSP 2021. Source: PRNewswire.