Redwood Trust Losses and Lawsuit

Levin Law, P.A. is Investigating Brokerage Firms that Recommended and Sold Redwood Trust, Inc. (RWT) to Customers

The national securities law firm, Levin Law, P.A. (“Levin Law”) is investigating brokerage firms, investment advisors, and other financial institutions that recommended and sold shares in Redwood Trust, Inc. (RWT) to their clients.  Please contact us at 305-402-9050 or contact@levinlawpa.com if your stockbroker or other financial professional recommended that you purchase Redwood Trust, Inc. (RWT) and you suffered meaningful losses.  RWT dropped nearly 75% in value over the last month.  Some brokerage firms marketed RWT has being a conservative investment appropriate for risk-averse investors, such as fixed-income senior citizens and those seeking to preserve their capital.

RWT is a Risky Investment

Redwood Trust, Inc. (RWT) is a specialty finance company focused on making credit-sensitive investments in residential mortgages and related assets and engaging in mortgage banking activities. RWT’s stated goal is to provide “attractive” returns to shareholders through a stable and growing stream of earnings and dividends, as well as through capital appreciation. Redwood Trust, Inc. was established in 1994, is internally managed, and structured as a real estate investment trust (“REIT”) for tax purposes.

RWT always had a high risk profile. Unfortunately for many brokerage firm customers, however, many stockbrokers informed their clients that shares in Redwood Trust, Inc. was a “safe” or conservative investment suitable for risk-averse investors.  When making recommendations to purchase securities, financial advisors have the duty to fully explain all important risks of such investments.  Many investment advisors, however, did not disclose the true risks inherent in RWT, resulting in investors thinking that their investments in RWT would not suffer significant losses.  Those investors were justifiably surprised when their so-called “safe” investments dropped around 75% in value during the most recent market decline, resulting in part due to the Covid-19 pandemic.

If you have suffered losses in the Redwood Trust, Inc. (RWT), please contact  Levin Law, P.A. managing partner, Brian Levin, at 305-402-9050, brian@levinlawpa.com, or visit Levin Law’s website, www.levinlawpa.com.  Levin Law accepts most cases on a contingency-fee basis, meaning that you would not be obligated to pay Levin Law’s attorney fees unless money is recovered for the you.

Investors May be Able Recover Losses through a FINRA Arbitration

If your stockbroker, investment advisor, or other financial professional recommended that you purchase the Redwood Trust, Inc. (RWT) and you have lost money, you may be able to recover your losses through a Financial Industry Regulatory Authority (“FINRA”) arbitration claim.

About Levin Law

Levin Law is a premier national securities and class action law firm with significant experience.  Brian Levin, Levin Law’s founding attorney, has helped recover around $100,000,000 through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.