Apple Real Estate Investment Trusts (REITs) are known for their value, but some disgruntled investors are claiming to have gotten far less than they bargained for when they invested with the REIT company owned by Glade Knight. Three separate groups of investors claim to have been misled about “the true value and risk of their investments” by the brokers that sold them the shares, Knight himself and others connected to the REIT. Apple has called the claims “without merit” and announced that it intends to “defend against them vigorously.”
The suit was recently expanded to include more Apple executives and alleges that the Apple brokers in questions sold shares to “elderly, retired and/or unsophisticated investors” while “misstating the fundamental business model of the Apple REITs.” All defendants are accused of misrepresenting the value of the shares and returns that investors would receive, in addition to accusing the brokers of making home visits in order to “aggressively” sell the REIT shares. Some allegations even make Apple executives sound like ponzi schemers, alleging that they borrowed money in order to pay investors.
Apple denies all allegations and has said that it will defend its brokers and itself.
Do you think that Glade Knight and/or his company is guilty?
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