It is being reported that the first of potentially hundreds of arbitration cases relating to the sale of Apple REITS by David Lerner Associates Inc. has been decided in favor of claimants Joseph Graziose and Florence Hechtel.
Last week, Financial Industry Regulatory Authority Inc. arbitrator Alvin Green apparently ordered the firm to pay the two individuals $24,450 after they return their shares of Apple REIT Nine to the firm. (Apple REIT Nine is the fourteenth largest nontraded REIT in the U.S. In addition to Apple REIT Nine, arbitration claims have been filed involving Apple REIT Six, Apple REIT Seven, and Apple REIT Eight).
The Finra arbitrator’s decision could be an ominous sign given potentially hundreds of other claims already filed or likely to be filed against the firm over the Apple REIT investments. (According to Finra, Mr. Lerner’s firm has sold nearly $7 billion worth of the Apple real estate trusts since 1992.)
The White Law Group continues to advise Apple REIT investors on their litigation options. At this point, this much appears known:
(1) In May 2011, FINRA launched an investigation into David Lerner’s sales practices with respect to Apple REITs;
(2) In June 2011, multiple class actions were filed against David Lerner and Apple REIT raising similar allegations as those raised by FINRA;
(3) David Lerner recently changed the way Apple REITs are valued on their account statements – stating only that the REITs are “unpriced,” and acknowledging for the first time that the value may not be what the investor paid for the shares;
(4) Those that requested a redemption prior to June 30, 2011 (the last quarterly deadline to request a redemption) were told that only a partial redemption would be possible;
(5) The only known offer to purchase Apple REIT shares is at $3/share and the alleged book value is approximately $7/share (meaning that the actual value of the Apple REITs is likely between $5-7/share).
If you are an Apple REIT investor interested in learning about your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit https://whitesecuritieslaw.com.Tags: Apple REIT arbitration award, Apple REIT arbitration claim, Apple REIT fraud, Apple REIT latest, Apple REIT lawsuit, Apple REIT losses, Apple REIT news, Apple REIT price, Apple REIT redemption request, Apple REIT rescission, Apple REIT sales options, Apple REIT secondary market, Apple REIT share price, apple REIT valuation, David Lerner arbitration award, David Lerner arbitration claim, David Lerner fraud, David Lerner latest, David Lerner news, how to sell Apple REIT Last modified: December 9, 2022