The South Florida Securities Law Firm Soreide Law Group is representing an investor from Davie, Florida in a securities arbitration claim before the Financial Industry Regulatory Authority or “FINRA” for losses sustained after the merger between NorthStar Real Estate Income Trust and Colony Capital merged to form Colony NorthStar.
NorthStar Real Estate Income Trust Shareholders lost one-third of their original value of their investment overnight after the newly formed company Colony NorthStar became listed under the symbol “CLNC.”
The shareholders of NorthStar Real Estate Income Trust Inc.1 & 2, two non-traded Real Estate Investment Trusts or “REITs”, approved the merger on January 18th with Colony Capital.
NorthStar Real Estate Income Trust was not a publically traded REIT and investors may not have been given a warning to exit their position before the merger took place resulting in a much more volatile publically traded company that trades under CLNC being formed.
The clients, represented by Lars Soreide, Esq., are from Davie, Florida and used LPL broker Samuel Izaguirre who allegedly did not inform the Claimants that the merger was about to happen and give them an opportunity to not participate and exit their position. The Claimants previously owned NorthStar Real Estate Income Trust, which was valued at close to $25 per share and after the merger shareholders in the newly formed entity lost over 33% in value overnight after CLNC became listed.
According to Samuel Izaguirre’s FINRA broker check report, the LPL broker has 13 years experience in the securities industry and one other customer dispute from 2010. According to the lawsuit it is alleged by the Clamant the Izaguirre admitted that he failed to inform his customers of the upcoming merger of NorthStar REIT and Colony Capital and failed to give them an opportunity to exit their positions before the non-traded NorthStar REIT became publically traded under CLNC.
If you were a customer of LPL Financial broker Samuel Izaguirre of Pembroke Pines, Florida who does business under Atlantic Capital Advisors and owned NorthStar Real Estate Income Trust, call Soreide Law Group today at (954) 760-6552. We represent investors nationwide on a contingency fee basis and there is no fee if no recovery. For more information on Soreide Law Group please visit Securities Lawyers Helping Victims of Broker Fraud Before FINRA