Apple REIT Hit With Securities Suit Over $2B Ponzi Scheme

Law360, New York (November 16, 2011, 8:15 PM EST) -- Apple REIT Nine Inc. and investment firm David Lerner Associates Inc. were hit Wednesday with a putative class action in New York state court by Apple REIT shareholders who claim they were misled into buying artificially inflated shares in a $2 billion Ponzi scheme.

Lead plaintiff Barbara Blazer, who purchased Apple REIT Nine shares in April 2009 and December 2010, claims Apple REIT underwriter David Lerner misrepresented the trust's business model and failed to disclose that Apple REIT was being sold at an artificially high and...
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