National investment loss and securities law firm KlaymanToskes continues its investigation of representations made by financial advisors who recommended investments in Creative Media & Community Trust Corporation (NASDAQ:CMCT), and is preparing to file FINRA arbitration claims seeking to recover significant damages on behalf of an investor who suffered significant losses in CMCT. Investors who suffered losses of $100,000 or more as a result of a recommendation by their broker/investment advisor should contact the law firm immediately. Investors with self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our representation.

CMCT’s stock price has recently plummeted to $0.21 per share, representing an overall decline of 94.9% within the past year. Following the redemption of CMCT’s preferred stock during the second quarter of 2024, approximately 25% of the outstanding preferred shares were converted into common stock. Many investors, facing limited liquidity options, either chose or were compelled to receive their redemption in common stock. This increase in available shares contributed to significant downward market pressure, resulting in devastating losses for investors.

KlaymanToskes’ continues its investigation of brokerage firms and financial advisors who may have failed to adequately disclose the liquidity risks and potential impacts of the preferred stock redemption to investors. Many investors were left holding significantly devalued positions in CMCT common stock, which were below their original investment values.

Source: https://www.accesswire.com/953320/important-notice-kt-law-firm-represents-cmct-investor-in-finra-arbitration-claim-for-unsuitable-recommendations