CMCT Preferred Stock Investors May Have Losses – Goodman & Nekvasil, P.A. Investigating Investor Claims

CMCT Preferred Stock Investors May Have Losses – Goodman & Nekvasil, P.A. Investigating Investor Claims

Investors Who Purchased CMCT Preferred Stock May Have Suffered Losses After Their Investment Was Redeemed in Common Stock

Investors who purchased Creative Media & Community Trust Corporation (“CMCT”) preferred stock may have suffered  investment losses after the company redeemed large amounts of its preferred stock by issuing shares of its common stock.

Goodman & Nekvasil, P.A. is investigating potential claims on behalf of investors who purchased CMCT preferred stock and suffered losses.

Call 800-500-4442 for a free consultation.

CMCT marketed and sold multiple series of preferred stock, including Series A Preferred Stock, Series A1 Preferred Stock, and Series D Preferred Stock. These investments were often purchased by investors seeking income and a security that appeared to have characteristics different from common stock.

However, CMCT’s SEC filings show that the company redeemed substantial amounts of its preferred stock in shares of CMCT common stock rather than cash. Investors who were converted into common stock may have been exposed to significant market losses.

CMCT’s Preferred Stock Redemptions Created Common Stock Dilution

CMCT’s SEC filings demonstrate the extraordinary scale of the preferred stock redemptions paid in common stock.

As of March 31, 2026, CMCT reported that it had redeemed:

• More than 11.2 million shares of Series A1 Preferred Stock;
• More than 7.1 million shares of Series A Preferred Stock; and
• More than 34,000 shares of Series D Preferred Stock.

A substantial portion of these redemptions was paid in CMCT common stock rather than cash.

CMCT also acknowledged that the redemption of preferred stock into common shares placed substantial pressure on its common stock. In SEC filings, the company stated that its common stock price had come under significant downward pressure after it began redeeming

CMCT Investors Should Review How the Investment Was Recommended

The sale of CMCT preferred stock may have involved significant commissions and other compensation. CMCT’s SEC filings acknowledge that offering costs included commissions, dealer-manager fees, and other offering fees and expenses.

Investors who suffered losses may want to investigate:

• Whether the investment was suitable for their financial circumstances;
• Whether the risks of CMCT preferred stock were adequately disclosed;
• Whether the possibility of redemption in common stock was adequately explained;
• Whether the investment was concentrated in a portfolio;
• Whether the investor needed the money for income or preservation of capital;
• Whether the broker or financial adviser adequately explained the risks of CMCT common-stock exposure;
• Whether material information or risks were misrepresented or omitted; and
• Whether commissions or other compensation created a conflict of interest.

The circumstances surrounding the recommendation and sale of the investment are important.

FINRA Arbitration May Be Available to Some CMCT Preferred Stock Investors

Investors who purchased CMCT preferred stock through a broker-dealer or financial adviser may have potential claims against the firm that recommended or sold the investment.

Depending upon the circumstances, investor claims may involve allegations of:

• Unsuitable investment recommendations;
• Failure to comply with Regulation Best Interest;
• Misrepresentations or omissions of material facts;
• Failure to adequately disclose investment risks;
• Negligence;
• Breach of fiduciary duty, where applicable;
• Breach of contract; and
• Failure to supervise.

Disputes involving brokerage firms are typically resolved through FINRA arbitration rather than a traditional court lawsuit.

Goodman & Nekvasil, P.A. is investigating potential claims for investors who purchased CMCT preferred stock and subsequently suffered losses.

Did You Purchase CMCT Preferred Stock and Lose Money?

If your financial adviser or broker recommended CMCT Preferred Stock, including:

• CMCT Series A Preferred Stock;
• CMCT Series A1 Preferred Stock; or
• CMCT Series D Preferred Stock,

and you suffered investment losses, you may have legal options.

Investors should preserve account statements, trade confirmations, offering documents, correspondence with their financial adviser, and documents showing the value of any CMCT common stock received through a preferred-stock redemption.

Contact Goodman & Nekvasil, P.A. About Your CMCT Preferred Stock Losses

Goodman & Nekvasil, P.A. represents investors in claims against brokerage firms and financial professionals.

If you purchased CMCT preferred stock and have suffered losses, contact Goodman & Nekvasil, P.A. to discuss your potential claim.

Call 800-500-4442 for a free consultation.

St. Petersburg, Florida law firm Goodman & Nekvasil, P.A., has a national practice representing victimized investors.  The  firm continues to investigate brokerage firms that placed elderly retirees and other conservative investors in unsuitable investments.

Goodman & Nekvasil, P.A., has filed numerous cases against brokerage firms selling high-risk investments and has recovered more than $600 million dollars on behalf of victimized investors.

We allege in these cases that these investment recommendations were unsuitable for our clients in view of their financial situation, needs and investment objectives.

There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee.

If you incurred losses on your investment and would like your case evaluated by a securities attorney, please contact us.

Some of the information in this blog post was obtained from FINRA on 8/24/26. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.