Priority Income Fund Investor Alert

Soreide Law Group is currently investigating potential investor claims tied to the sales of Priority Income Fund, Inc. Securities brokers and financial advisors may have violated industry rules when recommending this investment to retail clients. Priority Income Fund has been the subject of negative reports, and many investors have seen troubling developments with their holdings. Below we outline what investors need to know.

What is Priority Income Fund?

Priority Income Fund began operations in 2013 and was created to provide access to collateralized loan obligations (CLOs). The fund operates as a closed-end investment vehicle and directs the majority of its assets into securitized pools of senior secured loans. In addition, it may hold equity and junior tranches of CLOs, as well as securities issued by international issuers. At the end of 2024, the fund reported assets of more than $900 million.

Concerns About Priority Income Fund

It has been alleged that, over the last several years, investors may have experienced a steady decline in the fund’s reported net asset value. Some reports suggest that shares originally offered at around $15 were later valued at just over $7 by spring 2025. While the fund has reportedly offered quarterly repurchase programs, those buybacks are said to have been limited and allegedly insufficient to meet investor demand. According to these accounts, only a portion of the shares tendered by investors appear to have been repurchased, leaving some investors claiming they were unable to fully exit their positions.

It has further been reported that the fund suspended new common share offerings in May 2025 and publicly announced its intention to pursue a possible public listing no later than 2026. This proposed listing, according to the fund’s own disclosures, would allegedly include restrictions that could limit how quickly investors might sell shares during the first 270 days of trading, which some observers suggest underscores ongoing liquidity challenges. Commentators also note that the complex structure of CLOs—particularly the equity and junior tranches—may present significant risks, especially for individuals with more moderate or conservative investment profiles.

Possible Sales Practice Violations

When recommending investments, financial professionals are required to assess whether the product is suitable based on the investor’s age, financial condition, and risk tolerance. Problems can arise when advisors fail to disclose material risks, misrepresent the potential for returns, or suggest speculative products to clients who cannot afford large losses. These practices may be considered violations of securities laws and regulations. Investors harmed by these actions may be entitled to pursue recovery through FINRA arbitration or other legal remedies.

Did You Sustain Losses By Investing In Priority Income Fund?

Did you experience losses because of investing in Priority Income Fund, Inc. at the recommendation of your financial advisor or securities broker? If so, you can contact Soreide Law Group online or call (888) 760-6552 to speak with a securities attorney about your potential claim. Soreide Law Group represents investors nationwide, advancing all costs and working on a contingency fee basis, meaning the firm is only compensated if a recovery is made.