Business Context and Reporting Period
This Form 8-K is filed by Apple REIT Nine, Inc. (a subsidiary of Apple Hospitality REIT, Inc.) on April 12, 2013. The report addresses a legal development regarding the "In re Apple REITs Litigation" class-action complaint filed in the Eastern District of New York.
Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on a legal event and contains no financial performance data.
Material Changes
The primary material change reported is the status of ongoing litigation:
- Dismissal Granted: On April 10, 2013, the court granted the Company's motion to dismiss the Amended Consolidated Class-Action Complaint in full and with prejudice.
- Appeal Filed: On April 12, 2013, the Plaintiffs filed a Notice of Appeal regarding the dismissal.
Outlook, Risks, and Management Commentary
Management maintains that the claims against the Company, its officers, directors, and other Apple entities are without merit and intends to defend them vigorously. However, the Company states it cannot reasonably predict the outcome of the appeal or provide a reasonable estimate of any possible loss or range of loss at this time.
Key Facts for Investor Verification
- The underlying class-action lawsuit was dismissed with prejudice, but the Plaintiffs have appealed the decision.
- No financial impact or loss estimate can currently be determined by the Company.
- The Company is committed to a vigorous defense of the appeal.