Judge approves $713 million sale of 30 Inspired Healthcare Capital properties

A federal judge in Texas this week approved the sale of 30 properties controlled by bankrupt Inspired Healthcare Capital for $713 million, InvestmentNews reported. That is close to 59% of the $1.2 billion of Inspired Healthcare securities financial advisors sold to clients, according to the report.

August Iorio, a plaintiff's attorney representing clients suing the broker-dealers that sold the Inspired Healthcare investments, said: "The sale price is the headline number, but based on what we know today, I think it is very likely that many, if not most, DST investors will lose at least some of their principal investment." He added that sale prices "don't tell us how much money will actually make its way back to investors," and that disputes over how the proceeds will be divided are unresolved.

Inspired Healthcare declared bankruptcy in February, after the SEC "initiated a formal investigation into the company" in April 2025, according to a court filing cited in the report. In response to that investigation, the company stopped making distributions to investors and lenders, the filing says.

Broker-dealers and financial advisors who sold the deals generated more than $100 million in fees and commissions, InvestmentNews reported. Measured against the $1.2 billion clients paid for the securities, that is roughly an 8% load, though the two figures may not cover the same set of sales.

Over the summer, U.S. bankruptcy judge Mark X. Mullin granted an injunction halting new FINRA arbitration claims and further proceedings on existing ones. The order came in response to a motion by Inspired Healthcare Capital Holdings. Per Iorio, investors with FINRA claims against the broker-dealers that sold the products may proceed as long as the Inspired Healthcare products are set aside; the arbitrations may then continue on other claims involving other sales practices and products.

That leaves two tracks: the bankruptcy court's division of the $713 million and the arbitration cases that survive the injunction. The 59% compares a property sale price with what clients paid for securities; it is not a recovery rate.