NEW YORK, Nov. 30, 2011 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T") announced today that it launched a website, http://www.sue-davidlerner.com/">www.sue-davidlerner.com, designed to provide information to customers of David Lerner Associates ("DLA") who invested in Apple REITs. These include Apple REIT Six, Apple REIT Seven, Apple REIT Eight, Apple REIT Nine and Apple REIT Ten. K&T has been contacted by investors who purchased Apple REITs from DLA and anticipates filing securities arbitration claims against DLA to recover the money invested in Apple REITs. Investors have complained that the Apple REITs sold to them were misrepresented, as they were advised by their DLA advisor that their money would be liquid and accessible while invested in the REITs. The reality is that the Apple REITs are illiquid investments and unsuitable for investors who were looking to access their money. As DLA statements now show that the Apple REITs are "not priced," investors should act quickly to explore their legal options.
In May of 2011, FINRA announced that it filed a complaint against David Lerner, charging the firm with soliciting investors to purchase shares in Apple REIT Ten without conducting a reasonable investigation to determine whether it was suitable for investors, and with providing misleading information on its website regarding Apple REIT Ten distributions. FINRA's complaint further alleges that since at least 2004, the closed Apple REITs (Apple REITs Six through Nine) have unreasonably valued their shares at a constant price of $11 notwithstanding market fluctuations, performance declines and increased leverage, while maintaining outsized distributions of 7 to 8% by leveraging the REITs through borrowings and returning capital to investors. According to FINRA, DLA did not question the Apple REITs' unchanging valuations despite the economic downturn for commercial real estate.
While a class action lawsuit has been filed on behalf of Apple REIT investors, K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant losses, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, K&T conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf">http://www.nasd-law.com/documents/classvr.pdf
DLA customers who invested $250,000 or more in Apple REITs can contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, to discuss your legal options. You can also visit us on the web at http://www.sue-davidlerner.com/">www.sue-davidlerner.com