Coral Gables, FL (PRWEB) June 22, 2011
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) provides notice to all Apple REIT Ten investors concerning the class action lawsuit (Case No. 11 CV 02919) filed June 17, 2011, in the United States District Court for the Eastern District of New York for the class period from April 24, 2008 through June 17, 2011. The class action Defendants include, David Lerner Associates, Inc. (DLA) who was the sole underwriter and distributor for the Apple REIT Ten investment solicited and sold to DLA customers. The class action lawsuit alleges the Offering documents related to the Apple REIT Ten investments “contained materially false and misleading statements and omitted to state facts necessary to make the statements made therein not materially misleading.” On May 17, 2011, Financial Industry Regulatory Authority (FINRA), filed Disciplinary Proceeding No. 2009020741901 which was a complaint filed against FINRA member David Lerner Associates, Inc. for violation of NASD Rule 2310, 2210(d)(1) and FINRA Rules 2310(b), 2010. According to FINRA, DLA personnel did not conduct reasonable due diligence concerning the risks associated with the investment and failed to disclose the fact that income from the REIT was insufficient to pay the projected 7-8% returns without the use of borrowed funds. In light of these developments, TGN urges investors who hold Apple REIT Ten recommended by DLA to consider what recourse is available to recover their investment losses. FINRA is a self regulating organization with sales practice rules and regulations that govern DLA business conduct to safeguard and protect the investing public.
According to TGN, many investors invested in Apple REIT Ten because they believed the security was a suitable investment for conservative investors with current income objectives. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon brokerage firms for, competent, suitable investment advice for investments made in customer accounts. The failure to supervise brokerage account activity, unsuitable investment advice or fraudulent misrepresentations and omission of material facts are causes of action that may be available to investors against DLA in an individual securities arbitration claim filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $100,000 from a David Lerner Associates brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.
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