Coral Gables, FL (PRWEB) July 06, 2011
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) provides notice to all Apple REIT Series 6-10 investors concerning the class action lawsuit (Case No. 2:33-av-00001) filed June 20, 2011, in the United States District Court for the District of New Jersey. The class action Defendants include, David Lerner Associates, Inc. (DLA) who was the syndication underwriter and distributor for the Apple REIT Series 6-10 solicited and sold to DLA customers. The class action lawsuit alleges the Offering documents related to the Apple REITs Series 6-10 “represented to potential investors that the Apple REITs paid a steady 7-8% return on investment, but did not clearly disclose that the Apple REITs paid those returns by borrowing money and paying back capital because income from operations was never sufficient to fund the distributions.” The class action further alleges that the REITs share price was “arbitrarily” set at $11 per share even though, “the value of the REITs fluctuated as a result of the substantial commissions and fees paid at the outset, declines in the value of the properties due to the economic downturn, borrowings and returns of capital to investors.” In light of these developments, TGN urges investors who hold Apple REIT Series 6-10 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 the class action filing, “DLA and the Individual DLA Defendants marketed and sold the Apple REITs to DLA’s customers as conservative, safe low risk investments.” The class action states that Apple REITs were marketed to the investing public through, “internet, radio, cold calling, mailings, open invitation seminars at senior centers, retirement communities, and country clubs.” TGN asserts that DLA is 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 against David Lerner Associates for investment losses in Apple REITs that exceed $100,000, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.