The first of what may be potentially hundreds of arbitration cases relating to the sale of Apple REITs by David Lerner & Associates Inc. was recently decided in favor of the claimants. A single FINRA arbitrator ordered Lerner Associates to give the customers their money back in exchange for their Apple REIT nine shares.
As we have previously reported here, here and here, David Lerner and his company have been in the regulatory spotlight for the past year in connection with the sale of almost $7 billion worth of the Apple REITs. According to industry sources, Lerner's company has collected $600 million in commissions for the sales which comprise over half of the firm's business.
In June 2011, class action suits were filed against David Lerner & Associates over misrepresentations in connection with sales of Apple REITs. Later during the year FINRA filed actions against Lerner's company , then against Lerner himself for misleading investors about the Apple REITs.
If you purchased Apple REITs and have suffered losses, you may be able to recover those losses. Brokers have a duty to make suitable recommendations to investors. Please do not hesitate to contact us to discuss your legal rights.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.