David Lerner Associates

American investment firm

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David Lerner Associates, Inc.Company type| Corporation

|

Industry| Financial services
Founded| 1976
Founder| David Lerner
Headquarters| Syosset, NY
United States
Products| Investments
Owner| David Lerner

Number of employees

| 350+
Website| www.davidlerner.com

David Lerner Associates (DLA) is a privately held securities broker/dealer firm. The headquarters is in Syosset, New York, and there are branch offices in Westport, CT; Boca Raton, Florida; Teaneck and Lawrenceville, NJ; and White Plains, NY. Their product offerings include municipal bonds, mutual funds, retirement planning, life insurance, and other services.[1]

Its clients' assets totaling approximately $6 billion.

## History

[edit]

David Lerner Associates was founded by David Lerner in 1976.[2] The first office was established in Jericho, New York.[3] David Lerner Associates employs approximately 400 people,[citation needed] with its headquarters in Syosset, New York, and satellite offices in Lawrenceville and Teaneck, New Jersey; White Plains, New York; Westport, Connecticut; and Boca Raton, Florida.[2][3]

## Community Involvement and Awards

[edit]

Lerner has been a notable donor to causes in the community, including the Trey Whitfield School in Brooklyn.[4] For 20 years,[citation needed] David Lerner Associates has been the prime sponsor of the Greater Long Island Running Club’s Annual Police Appreciation Run.[5]

In 2011, a survey conducted by the Best Companies Group, named David Lerner Associates 6th place in the "large employer category" of the Best Companies to Work for in New York State.[6]

## Apple REIT

[edit]

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest portfolios of upscale, select service hotels in the United States. The Company's portfolio consists of 236 hotels, with more than 30,000 guest rooms.[citation needed]

Apple REIT started out as a non-traded real estate investment trust, and David Lerner Associates was the exclusive broker for this product.[7]

In May 2013, Apple REIT Six Inc. completed a merger with an affiliate of the Blackstone Group LP. Apple REIT Six was sold exclusively by the Lerner firm to investors from 2004 to 2006, with most shares at $11. Each holder of an Apple REIT Six unit received $11.10 in value, consisting of $9.20 in cash and $1.90 per share in preferred stock of the Blackstone affiliate, BRE Select Hotels Corp. Investors could redeem the new shares after seven and a half years; the shares have a dividend rate of 7%. The total transaction value of the deal was $1.2 billion.[8] The portfolio of Apple REIT Six consists of 66 hotels in 18 states and cashed out successfully for its investors.[9][10] [11]

Apple Hospitality was formed in March 2014 with the merger of Apple REIT Seven Inc., Apple REIT Eight Inc. and Apple REIT Nine Inc. and subsequently filed for IPO in April 2015. They started trading on the NYSE (APLE) in May 2015. [12] [13]

Apple Hospitality REIT announced in April 2016 that they were purchasing Apple Ten. The merger was approved in September 2016. This makes Apple Hospitality one of the largest select service lodging REITs in the industry, with an enterprise value of approximately $5.7 billion and a total equity market capitalization of approximately $4.4 billion.[14]

## FINRA complaint and class action dismissal

[edit]

In May 2011, the Financial Industry Regulatory Authority (FINRA) filed a class action lawsuit against David Lerner Associates, charging the firm with misleading investors by marketing unsuitable products to them and conducting insufficient due diligence on the company that managed its real estate funds.[11]

In October 2012, David Lerner Associates agreed to settle with FINRA for $14 million without admitting or denying the charges.[12] Lerner was fined $250,000 and suspended from the securities industry for one year, and head trader William Mason fined $200,000 and suspended for six months.[13]

In April 2013, U.S. District Judge Kiyo Matsumoto dismissed the class action lawsuit, ruling that investors had received sufficient disclosure to understand the risks of investing in its trusts.[14] In her opinion, Judge Matsumoto wrote, “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.”[15]

In December 2015, the FINRA Arbitration Panel dismissed with prejudice all claims in the FINRA customer arbitration against David Lerner Associates.[citation needed]

## References

[edit]

1. ^ "About David Lerner and Associates". David Lerner and Associates. David Lerner Associates Inc. Retrieved 23 September 2016. [verification needed]
2. ^ "Wall Street Journal Ranks David Lerner Associates' Mutual Fund in Their Best-Performing Stock Fund Report". www.businesswire.com. 2010-08-25. Retrieved 2020-08-13.
3. ^ "David Lerner Lives the American Dream". Syosset, NY Patch. 2010-08-17. Retrieved 2020-08-13.
4. ^ Bango, Shelly (September 24, 2010). "Brooklyn School Gets Financial Aid". The Wall Street Journal. Retrieved 23 September 2016. [verification needed]
5. ^ Citation error. Mouse-over '[verification needed]' for pop-up msg. [verification needed]
6. ^ Zelman, Lorri (May 2011). "50 Employers in the Empire State Named "Best Companies to Work For in New York" 2011" (PDF) (Press release). New York, NY: New York State Society for Human Resource Management. Retrieved 2016-09-23. [verification needed]
7. ^ "David Lerner Associates' financial condition deteriorates". InvestmentNews. 2019-07-10. Retrieved 2020-08-13.
8. ^ Schwarz, Michael (May 13, 2013). "Local REIT fund sold in billion-dollar deal". Richmond BizSense. Retrieved 25 September 2016. [verification needed]
9. ^ Peter, Bacque (November 30, 2012). "Apple REIT Six to be sold in proposed $1.2 billion deal". Richmond Times-Dispatch. Retrieved 23 September 2016. [verification needed]
10. ^ Kelly, Bruce (November 3, 2012). "Nontraded REIT deal good news for shareholders". Investment News. Retrieved 23 September 2016. [verification needed]
11. ^ Troianovski, Anton (June 1, 2011). "Finra Sues David Lerner Firm". The Wall Street Journal. Retrieved 23 September 2016. [verification needed]
12. ^ "Order Accepting Offer Of Settlement" (PDF). Financial Industry Regulatory Authority (FINRA). Archived from the original (PDF) on 16 November 2013. Retrieved 10 December 2013. [verification needed]
13. ^ "Customers to Receive Approximately $12 Million in Restitution, Firm Fined $2.3 Million; President and Head Trader Fined and Suspended" (Press release). Washington, DC: Financial Industry Regulatory Authority, Inc. October 22, 2012. Retrieved 23 September 2016. [verification needed]
14. ^ Phillips, Ted (April 4, 2013). "Class-action suit against David Lerner Associates dismissed". Newsday. Retrieved 10 December 2013. [verification needed]
15. ^ Singer, Bill (April 4, 2013). "David Lerner And Apple REITs Defendants In Stunning Class Action Victory". Forbes. Retrieved 10 December 2013. [verification needed]