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Investors Sue David Learner Associates Over $6.8 Billion REIT Sale

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Investors Stanley and Debra Kronberg of Mahwah, New Jersey have filed a lawsuit in Newark, New Jersey federal court and are seeking class action status, alleging that David Learner Associates Inc., misstated the business model of the REITS and misrepresented the value of shares and returns for investors.

The lawsuit alleges that “ investors who have acquired interests in the Apple REITs have incurred substantial unrealized losses because their interests are worth far less than the price paid by investors to acquire them.”

An attorney for DLA said in an e-mail statement that “[t]he allegations are baseless and rife with falsehoods, distortions and misleading statements, and we look forward to the opportunity to be vindicated in a court of law.”

Bloomberg reports that the lawsuit alleges that, “The investors…claim the REITs were sold to retail investors and retirees at $11 per share and paid returns of 7 percent to 8 percent. The REITs never disclosed that they failed to generate enough income from successful operations and that they “were paying investors with their own money.”

 

breakinglawsuitnews.com disclaimer: This article: Investors Sue David Learner Associates Over $6.8 Billion REIT Sale was posted on Thursday, June 23rd, 2011 at 9:04 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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