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Stone Bonner & Rocco LLP Investigates Apple REIT, Apple REIT Ten and David Lerner Associates, Inc.NEW YORK --(Business Wire)-- The Law Firm of Stone Bonner & Rocco LLP is investigating the investment firm of David Lerner Associates, Inc. (DLA) for possible fraud, breach of fiduciary duty and other claims relating to the sale of Apple (News - Alert) REITs, including, but not limited to, the recent sale of interests in Apple REIT Ten. Investors in these securities who wish to obtain more information about their rights may contact Ralph M. Stone or Patrick L. Rocco of Stone Bonner & Rocco LLP to discuss their rights and possible options. DLA has marketed Apple REITs heavily to investors in recent years, especially in New York and Florida. A recent REIT offering, Apple REIT Ten, has become the focus of significant scrutiny, and the Financial Industry Regulatory Authority (FINRA) has charged DLA with making msrepresentations about Apple REITs, including misrepresentations about their returns. According to FINRA, DLA misleadingly marketed Apple REIT Ten on its website by presenting performance information for earlier Apple REITs, implying that Apple REIT Ten may be able to achieve similar results. The performance results for several of the earlier Apple REITs were misleading because (1) they did not reflect the recent reduction in distribution rates and (2) DLA did not disclose that income from those REITs was insufficient to support their 7-8% returns and that the distributions were partially funded by debt that further leveraged the REITs. DLA's website misleadingly and inaccurately characterized the source of distributions as "net income and a return of capital, primarily in the form of depreciation" when in fact the return of capital was not primarily from depreciation. Stone Bonner & Rocco LLP is one of the leading law firms emphasizing securities litigation and arbitration, and it has recovered hundreds of millions of dollars for individual and institutional investors in a wide variety of securities cases and arbitrations around the country. More information about the firm is available on its website, www.lawssb.com, and upon request from the firm.
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