Naples Firm Vernon Litigation Group Investigating American Healthcare REIT (Formerly Griffin Healthcare III and IV)

Naples, FL., — Vernon Litigation Group, based in Naples, Florida is investigating claims on behalf of investors in American Healthcare REIT (AHR). Investors of Griffin Healthcare REIT III and IV merged into AHR in 2021.

AHR went public earlier this week and is touting the fact that it is now trading above its IPO price. However, this public trading price bump cannot hide the devastating damages that pre-IPO investors suffered from following their financial advisor’s recommendation to buy this product at a much higher price (with a much higher dividend) when it was a non-traded REIT.

Although many brokerage firms downplay the risks of Non-Traded REITs due to the outsized commissions they receive from selling these products, these REITs are speculative investments that should not be sold to fixed income investors, investors in need of liquidity, investors averse to leverage, and, in our opinion, some non-traded REITs are virtually incompatible with the needs of almost all retail investors.

FINRA routinely reminds its broker-dealer firms and representatives that Non-Conventional Investments such as REITs and other alternatives of their obligations to: (1) conduct adequate due diligence to understand the features of the product; (2) perform a reasonable-basis suitability analysis; (3) perform customer-specific suitability analysis in connection with any recommended transactions; (4) provide a balanced disclosure of both the risks and rewards associated with the particular product, especially when selling to retail investors; (5) implement appropriate internal controls; and (6) train registered persons regarding the features, risks, and suitability of these products.