PORTLAND, Ore.— Banks Law Office is investigating claims filed by the Financial Industry Regulatory Authority (FINRA) against David Lerner & Associates (DLA) for selling non-traded real estate investment trusts (REITs) to seniors without disclosing the risks of the investment, violating federal securities laws.
Last month, clients holding shares in non-traded REITs created by Apple REIT Cos. Inc. received account statements that showed the longtime value of the shares as “not priced.” FINRA alleges that specific REIT registration statements and prospectuses failed to disclose material information concerning the value of shares of prior Apple REITs whose share value had declined significantly using a similar investment strategy. Additionally, the case alleges that David Lerner solicited such REIT purchases by means of false and misleading statements.
Since 1992, DLA has recommended and sold nearly $6.8 billion in Apple REIT shares as the exclusive selling agent. Similarly, a Cole REIT was in the news when a government pension fund demanded and received a return of its investment because it was too risky for retirement money.
Several private class action lawsuits have been filed over the misrepresentation of the Apple REITs; however, Robert S. Banks, Jr., President of Banks Law Office, cautions all investors to carefully evaluate their options before joining a class action case.
“In my experience of representing investors for nearly 30 years, individuals with strong claims are almost always better off filing an individual claim rather than participating in a class action because individual plaintiffs have more control over the case,” said Banks. “We urge investors to consult with an attorney and consider your options before concluding that your rights will be adequately protected by a class action lawsuit.”
Investors who were sold these non-liquidable investments may have an opportunity to recover their investments through FINRA arbitration. If you wish to discuss this action, or have any questions concerning this notice or your rights, contact us toll-free at (800) 647-8130.