An irreverent Wall Street Blog
by Bill Singer
by Bill Singer
David Lerner And Apple REITs Defendants In Stunning Class Action Victory
April 5, 2013In a dramatic Eastern District of New York Opinion by Judge Matsumoto, the Apple REITs class action Defendants' Motion to Dismiss was granted. David Lerner Associates and the Apple REITs emerge victorious in this contentious and high-profile class action.
Read the Memorandum and Order. In Re Apple REITs Litigation (EDNY,11-CV-2919, April 4, 2013). As the Court noted on page 44 of its Opinion:
Here, however, Plaintiffs have failed to proffer an actionable theory of loss.In sum, Plaintiffs' belabored Complaint appears only to confirm that the Apple REITs are currently functioning in exactly the manner that was anticipated and disclosed in the REITs' prospectuses and other offering documents. . .
In similarly stark and dismissive language, the Court states on page 47 of its Opinion:
As the court previously discussed, Plaintiffs have failed to sufficiently plead any damages as a result of Defendants' purported misrepresentations or omissions with respect to the Apple REITs. To the contrary, the Complaint alleges that Plaintiffs have in fact consistently earned money from the Apple REITs. (See Compl. ¶ 183 (discussing the REITs' "consistent 7-8% distributions").) Accordingly, Plaintiffs' claim for common law breach of fiduciary duty must be and is dismissed.