NEW YORK, June 16, 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. Following the recent FINRA Complaint which alleged that since at least 2004, closed Apple REITs, including Apple REIT Eight, have unreasonably valued their shares at a constant price of $11, Apple REIT Eight disclosed in an SEC filing that its book value was $7.57 per share at the end of March 2011. However, DLA client statements have continued to show the value of Apple REIT Eight at $11 per share, and representatives of DLA have continued to advise clients that the Apple REITs have maintained their value. However, contrary to these assertions, Apple REIT Eight's recent SEC filing and revaluation tends to support FINRA's allegations in its Complaint.
According to Steven D. Toskes of Klayman & Toskes, "This is the first sign that the allegations that Apple REIT has been using improper valuation procedures may have merit. We have been advised by customers of DLA that the firm continues to advise its clients that Apple REITs remain valued at $11 per share. The recent SEC filing for Apple REIT Eight does not cover the time period of April 2011 through mid-June 2011 which could result in further declines. Additionally, we are curious to learn why one of the board members of Apple REIT Ten resigned in early June, following the filing of the FINRA Complaint."
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.
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
CONTACT: Klayman & Toskes 888-997-9956