The Securities Arbitration Law Firm of KlaymanToskes, www.sue-davidlerner.com, announced today that it is continuing to investigate claims on behalf of David Lerner Associates (“DLA”) customers who invested in Apple REITs. Last week, DLA was sanctioned by the Financial Industry Regulatory Authority (“FINRA”) and ordered pay about $12 million in restitution to affected customers who purchased shares in Apple REIT Ten, a non-traded $2 billion Real Estate Investment Trust (“REIT”), and to customers who were charged excessive markups on municipal bonds and CMOs. FINRA also fined the founder, President and CEO of DLA, David Lerner, $250,000 and suspended him from the securities industry for one year, followed by a two-year suspension from acting as a principal.
According to FINRA, “as the sole distributor of the Apple REITs, DLA solicited thousands of customers, targeting unsophisticated investors and the elderly, selling the illiquid REIT without performing adequate due diligence to determine whether it was suitable for investors.” To sell Apple REIT Ten, FINRA added, “DLA also used misleading marketing materials that presented performance results for the closed Apple REITs without disclosing to customers that income from those REITs was insufficient to support the distributions to unit owners.”
While class action lawsuits have been filed concerning the Apple REITs, KlaymanToskes 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 will most likely recover only a nominal amount. However, if one has experienced significant losses in Apple REITs it may be more beneficial for them to file an individual securities arbitration claim. In 2003, KlaymanToskes 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: https://klaymantoskes.com/documents/classvr.pdf
Apple REIT investors are encouraged to contact KlaymanToskes to explore their legal rights and options. The attorneys at KlaymanToskes are dedicated to pursuing claims on behalf of investors who have suffered substantial losses. KlaymanToskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or invested $250,000 or more in Apple REITs, please contact Steven D. Toskes, Esquire at 888-997-9956, or visit us on the web at www.sue-davidlerner.com