# KlaymanToskes Files $200,000 FINRA Claim Against Cambridge Over CMCT Preferred Stock Losses > KlaymanToskes filed a $200,000 FINRA arbitration claim against Cambridge Investment Research over a couple's CMCT preferred stock losses. - Published: 2026-11-11T07:11:40+00:00 - Section: Legal & Disputes - Author: News Desk - URL: https://newsforagent.com/news/2026-11-11/cmct-preferred-stock-finra-claim-cambridge - Source: [EIN Presswire](https://www.einnews.com/pr_news/955858479/cmct-investor-losses-kt-files-200k-finra-claim-against-cambridge-investment-research) ## Key takeaways - KlaymanToskes filed a $200,000 FINRA arbitration claim against Cambridge Investment Research on behalf of a married couple who held CMCT preferred stock. - The claim alleges advisor David Christopher Smith put 73% of the couple's account into CMCT Series A1 Preferred Stock after liquidating about $210,000 in municipal bond funds in June 2023. - Cambridge's March 31, 2026 account statement valued the couple's converted common shares at $14,112.15, according to the claim. KlaymanToskes filed a $200,000 FINRA arbitration claim against Cambridge Investment Research on behalf of a married couple who lost value in Creative Media & Community Trust Corporation preferred stock, the law firm said in a November 11 announcement carried by [EIN Presswire](https://www.einnews.com/pr_news/955858479/cmct-investor-losses-kt-files-200k-finra-claim-against-cambridge-investment-research). The case is FINRA Case No. 26-02562. CMCT is a real estate investment trust whose Series A1 Preferred Stock was recommended to the couple by Cambridge financial advisor David Christopher Smith. ## Inside the CMCT Preferred Stock Claim According to the Statement of Claim, the investors wanted dependable income and preservation of principal as they approached retirement. In June 2023, Smith allegedly liquidated roughly $210,000 in municipal bond funds and used the proceeds to buy CMCT Series A1 Preferred Stock, leaving 73% of the couple's brokerage account in one illiquid holding. The claim alleges Smith pitched CMCT as an income-producing preferred stock paying a 7.58% dividend without adequately disclosing that the shares were not publicly traded, that dividends could be suspended, and that redemption requests could be met with CMCT common stock instead of cash. Cambridge allegedly kept reporting the preferred shares at their original $210,000 value on account statements even as CMCT's financial condition deteriorated and the company carried out multiple reverse stock splits. In March 2026, CMCT converted the couple's preferred shares into common stock, which Cambridge's March 31, 2026 statement valued at $14,112.15. The claim also alleges Cambridge failed to reasonably supervise Smith despite a prior regulatory history that included six federal tax liens totaling about $239,000, a customer complaint over unsuitable annuity recommendations, and a Massachusetts regulatory order requiring heightened supervision. "These investors relied on their financial advisor to preserve their savings and provide dependable income as they approached retirement," said Lawrence L. Klayman, Managing Partner of KlaymanToskes. "Brokerage firms have a responsibility to ensure that investment recommendations are appropriate for their customers and to exercise heightened scrutiny when a financial advisor has a history of regulatory concerns." The claim alleges unsuitable investment recommendations, inadequate due diligence, misrepresentations and omissions, negligence, breach of fiduciary duty, violations of Regulation Best Interest, and failure to supervise. The investors seek $200,000 in damages plus additional relief. [Cambridge Investment Research](https://akta.pro/company-profiles/0000kfc/cambridge-investment-research) is named as the respondent. ## Other Securities Disputes This Month Kaskela Law said on November 10 that it is investigating the fairness of Surgery Partners' proposed $23.50 per share buyout by HealthSpan Partners, noting that analysts' price targets had exceeded $28.00, [FinancialContent Business Page](https://www.financialcontent.com/article/bizwire-2026-11-10-shareholder-buyout-alert-kaskela-law-llc-announces-investigation-into-proposed-buyout-of-surgery-partners-inc-sgry-shareholders-at-2350-per-share-fair-price-or-insufficiently-low) reported. Steward Partners won more than $1.4 million in two arbitration clawback claims against former financial advisors who left in 2023 and had accused the firm of overstating their equity packages, [Financial Advisor IQ](https://www.financialadvisoriq.com/c/5293123/[object%20Object]) reported on November 6. Leo Group and Tomales Bay Capital agreed in principle to settle a lawsuit seeking over $2.5 billion over a failed SpaceX investment, [Caixin Global](https://www.caixinglobal.com/2026-11-05/leo-group-tomales-bay-agree-in-principle-to-settle-25-billion-spacex-suit-102501076.html?cxg=web&Sfrom=twitter) reported on November 5. ## What Comes Next in the FINRA Case KlaymanToskes said it represents numerous investors in claims involving CMCT preferred stock and other alternative investments. The firm is directing investors who lost money in CMCT through Cambridge, David Smith or another advisor to contact Klayman for a confidential consultation about potential recovery options. ## Companies in this story - CMCT · website: https://www.creativemediacommunity.com - [Cambridge Investment Research company profile](https://akta.pro/company-profiles/0000kfc/cambridge-investment-research) · website: http://www.joincambridge.com --- News for Agent · https://newsforagent.com/llms.txt