Eccleston Law Offices, P.C., Chimicles & Tikellis LLP, Labaton Sucharow LLP, and Stoltman Law Offices, P.C. announce that a securities class action lawsuit was commenced in the United States District Court for the Eastern District of New York on June 17, 2011 against defendants Apple REIT Ten, Inc. (“REIT Ten”), Apple REIT Nine, Inc. (“REIT Nine”), David Lerner & Associates, Inc. (“DLA”), David Lerner, Glade M. Knight, Bryan Peery, Kent W. Colton, Glenn W. Bunting, R. Garnett Hall, Jr., Ronald A. Rosenfeld, Anthony Francis Keating III, Lisa B. Kern, Bruce H. Matson, Michael S. Waters, and Robert M. Wily. The lawsuit alleges claims under Sections 11, 12, and 15 of the Securities Act of 1933 on behalf of a Class of all persons who purchased or otherwise acquired REIT Nine and REIT Ten securities between June 16, 2008 and the present, inclusive (the “Class Period”), who suffered damages as a result of the actions complained of therein (the “Class”).
The Complaint alleges, among other things, that: (1) REIT Nine’s and REIT Ten’s registration statements and prospectuses failed to disclose material information concerning the value of shares of prior Apple REITs, which pursued nearly identical investment strategies and whose share value had declined significantly, (2) the operations and investment model pursued by REIT Nine and REIT Ten was virtually guaranteed to lose investors’ capital, and (3) DLA solicited purchases of REIT Nine and REIT Ten by means of false and misleading statements concerning the distributions paid by prior Apple REITs.
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