MEDICAL PROPERTIES TRUST, INC. Investigation | Goodman & Nekvasil, P.A.

MEDICAL PROPERTIES TRUST, INC. Investigation | Goodman & Nekvasil, P.A.

MEDICAL PROPERTIES TRUST, INC.

MEDICAL PROPERTIES TRUST, INC. Investigation

Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your financial adviser.  

According to information posted on the company’s website, Medical Properties Trust, Inc. (MPT) is a self-advised real estate investment trust (REIT) formed in 2003 to acquire and develop net leased hospital facilities.

MPT holds long-term leases on 36 Steward-operated facilities that filed for Bankruptcy

On May 6, 2024, Steward Health Care System LLC and 166 of its affiliated debtors (collectively, the “Debtors”) each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.   Steward Health Care Systems is reporting $9 billion in debt.

Steward and its affiliates represented approximately 18.5% of the total assets of Medical Properties Trust, Inc., according to the REIT’s most recent form 10-Q filed with the SEC.    The filing of the 10-Q was late and as a result, Medical Properties Trust, Inc. is currently ineligible to file a new short-form registration statement on Form S-3 until June 1, 2025.  The REIT said this may impair its ability to raise necessary capital to repay debt obligations as they become due.

Massachusetts Lawmakers Are Proposing A Bill to Prevent REITs From Owning Hospitals In The Future

Following the bankruptcy of Steward and its affiliates the Massachusetts House of Representatives has proposed a bill that would prohibit hospitals from leasing their campuses from REITs.

MEDICAL PROPERTIES TRUST, INC. Investigation and the Risks of REIT Investments

Many investors are not fully aware of the problems and risks associated with illiquid, high risk, investments when they purchase them.  

REITs are riskier and more complicated than traditional investments.  These funds are only suitable for high net worth, sophisticated investors.

Liquidity Issues and High Sales Commissions

REIT investments can face several liquidity issues due to their unique characteristics and structure. 

Another problem often associated with REITs is the high sales commissions brokers typically earn for selling them. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.  

Unfortunately, in many cases, the high sales commission may influence unsuitable investment recommendations.  

Broker Due Diligence

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim. 

If you believe that your investments in MEDICAL PROPERTIES TRUST, INC. may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.

There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. If we don’t recover money for you, we charge no attorney’s fee.

Goodman & Nekvasil, P.A. has recovered more than $400 million on behalf of victimized investors. If you lost money on investments in unsuitable investments and would like your case evaluated by a securities attorney, please contact us.

Some of the information in this blog post was obtained from the SEC and FINRA on 6/24/24. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.

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