Apple REIT 7 and Apple REIT 8 revealed yesterday that they value the shares not at $11 per share but instead at $7.83 and $7.57 per share, respectively.
This is the most optimistic valuation; an independent buyer values the shares at $3 per share.
Whichever value you believe, this revelation by Apple REITs themselves flatly contradicts what David Lerner Associates has told investors -- in his letters, his steak-dinner presentations and monthly statements -- that the value of all Apple REITs is a constant, never-changing $11 per share. Those are misrepresentations and our arbitration and litigation actions filed on behalf of our clients will address those wrongs in recovering losses and rescinding the investments.
But the most egregious wrong happens every month and affects hundreds of thousands of investors and millions of dollars. That is the way David Lerner Associates operates its Dividend Reinvestment Program.
David Lerner Associates must stop charging investors $11 per share to reinvest their dividends on a monthly basis. There now is absolutely no justification for doing so. Simply stated, investors should not pay $11 per share but instead pay the true value for Apple 7 and Apple 8 to reinvest their dividends. Any more than that is highway robbery.
David Lerner must stop overcharging his “valued clients” in the dividend reinvestment program now! If not, Eccleston Law urges all to stop reinvesting their dividends!
Investors in all Apple REITs should act quickly and contact one of our attorneys at 312-332-0000. Our attorneys already are representing investors who have suffered losses investing in the Apple REITs along with those who are seeking to rescind (get out of) their investment in these products.
FinancialCounsel.com, hosted by James J. Eccleston, is a companion website to this blog, along with EcclestonLaw.com. It contains complementary material of general interest to investors and financial services professionals. Investors will find material on securities arbitration to recover investment losses; industry and financial markets intelligence; and strategies for estate planning. Professionals have access to material on broker/adviser registration, regulation, compliance and disciplinary proceedings; industry and financial markets intelligence; strategies for estate planning; and broker/adviser employment litigation and injunctions, including defamation and non-competition/solicitation issues. 
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