2nd Circ. Says No Coverage For DLA In $14M Apple REIT Row

Law360, New York (November 21, 2013, 5:24 PM EST) -- The Second Circuit on Thursday upheld a lower court’s ruling that Philadelphia Indemnity Insurance Co. has no duty to cover securities brokerage David Lerner Associates Inc. in litigation over its alleged misleading of investors in a real estate investment trust, saying policy exclusions apply.

In October 2012, the Financial Industry Regulatory Authority ordered Syosset, N.Y.-based DLA to pay $12 million in restitution to customers who bought shares in the $2 billion nontraded Apple REIT Ten Inc., and a $2.3 million fine for charging customers unfair prices...
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