Shepherd Smith Edwards and Kantas Can Help You Assess Whether You Have Grounds for An Investment Loss Recovery Claim

Priority Income Fund’s net asset value (NAV) has dropped over 70% from $15 to $3.15 per share, signaling severe structural issues and underlying asset risks for investors. Because the fund relies on high-risk junk debt, collateralized loan obligations (CLOs), and heavy leverage, law firm Shepherd Smith Edwards and Kantas is offering legal aid for retail investors and retirees seeking recovery through FINRA arbitration.

If you suffered losses in Priority Income Fund, it is important that you contact Shepherd Smith Edwards and Kantas FINRA attorneys (investorlawyers.com) right away to request your free case consultation. This closed-end fund is heavily concentrated in collateralized loan obligations and senior secured loans, along with below-investment-grade (junk-rated) debt and riskier CLO equity tranches. Priority Income Fund was always an unsuitable investment recommendation for typical retail investors and conservative retirees.

Why Might Priority Income Fund Be An Unsuitable Investment Recommendation for Retail Investors or Retirees?

This is an leveraged, illiquid, collateralized loan obligation-related investment. It is inappropriate for unsophisticated investors, older investors that want to take on minimal to no risk, and investors that need liquidity to easily access their money. Yet many of the Priority Income Fund investors we are representing are retail investors and seniors.

Why Is Priority Income Fund’s Latest Net Asset Value Cause For Investor Concern?

• This closed-end fund’s NAV was recently reported as about $3.15/share. That is a huge drop and loss for Priority Income Fund investors who originally paid $15/share. In fact, that’s a more than 70% decline.
• A lower NAV can signal a decline in the underlying value of the investments in a fund, structural issues that could impact capital, or poor fund performance. (If a fund has mediocre or poor returns, and also high expenses while charging stiff management fees, these can lower the net asset value.)
• The latest decline in NAV adds to existing concerns related to Priority Income Fund, including that 80% of its underlying assets are held in junk debt, existing leverage could magnify underlying credit losses, and periodic tender offers have been oversubscribed.
• While the closed-end fund plans to list its common shares on the New York Stock Exchange before December 31, 2026, this timeline is still uncertain. Not only that, but sales caps have been placed regarding what percentage of shares can be sold during certain periods.
• Because of the high-risk strategy used by Priority Income Fund,CLO equity and junior debt would absorb any losses first should underlying loans default. This makes the Fund’s assets more high-risk than direct loan investments.

How Do I Sue My Broker Over My Priority Income Fund Losses?

The first step is to speak with our seasoned Priority Income Fund recovery attorneys who can assess whether you do have legal grounds for an investment loss recovery claim against your financial advisor. Shepherd Smith Edwards and Kantas can determine whether you were the victim of unsuitability, misrepresentations and omissions, Regulation Best Interest Violations, breach of fiduciary duty, supervisory failures, broker fraud, or negligence.

If you do have a Priority Income Fund loss recovery claim, you will need to file your broker misconduct case in FINRA arbitration. Our savvy FINRA attorneys have a strong record securing financial recovery for the majority of our clients.

Discuss Your Priority Income Fund Losses With Us Today

Call our FINRA attorneys at (800) 259-9010 or contact us online to schedule your free case assessment.