Suit Says Broker DLA Duped Elderly In $300M REIT Sales

Law360, New York (February 22, 2012, 1:41 PM EST) -- New York-based brokerage firm David Lerner Associates Inc. was hit with a putative class action Tuesday for allegedly misleading elderly and unsophisticated clients into buying more than $300 million worth of securities from two real estate investment trusts.

Investors sued the firm and a group of individual executives over the sales, which are part of a $2 billion series of REITs invested in the extended-stay hotel sector, arguing that the brokerage had not performed due diligence in the transactions.

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