NEW YORK, June 4, 2011 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), , announced today that it is continuing to investigate the sales practices of David Lerner & Associates ("DLA") who solicited many of its customers to invest in illiquid real estate investment trusts ("REITs") called Apple REITs. Since launching its investigation, K&T has received numerous inquiries from Apple REIT investors who invested significant amounts of money in the products. Some of these investors want to request a full redemption of their principal investment. However, they have been asked to sign Redemption Acknowledgement Forms which contain language and acknowledgements which may affect investors' legal rights. Accordingly, K&T urges Apple REIT investors to explore their legal rights and options before signing any forms or acknowledgements provided by DLA.
Earlier this week, the Financial Industry Regulatory Authority ("FINRA") announced that it filed a complaint against DLA, 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 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 percent by leveraging the REITs through borrowings and returning capital to investors. As sole distributor, FINRA stated, DLA did not question the Apple REITs' unchanging valuations despite the economic downturn for commercial real estate.
According to Steven D. Toskes, a partner at Klayman & Toskes, "We have successfully obtained recoveries for clients over the last several years in these same types of illiquid investment products. The danger of clients investing in illiquid products like these is that they are not freely tradable in the market place, but instead are dependant on valuation procedures which may not properly value the securities. Over the years, these valuation procedures have created conflicts of interest. This conduct appears to repeat itself as we have seen this many times before."
The attorneys at K&T are dedicated to aggressively pursuing claims on behalf of investors who have suffered investment losses. K&T, 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 invested $200,000 or more in Apple REITs and wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com
CONTACT: Klayman & Toskes 888-997-9956