Business Context and Reporting Period
Company: Apple Hospitality REIT, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: April 23, 2014
Subject: Update on the In re Apple REITs Litigation matter regarding a consolidated class action lawsuit.
Key Financial Metrics
This filing is a legal update under Item 8.01 (Other Events) and does not contain financial statements. The filing text does not provide values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes and Legal Developments
On April 23, 2014, the United States Court of Appeals for the Second Circuit issued a summary order in the consolidated class action litigation:
- Dismissals Affirmed: The Second Circuit affirmed the District Court's dismissal of plaintiffs' state and federal securities law claims and the unjust enrichment claim.
- Claims Remanded: The Second Circuit vacated and remanded the dismissal of state common law claims (breach of fiduciary duty, aiding and abetting, and negligence) because the District Court relied on a finding that the complaint did not allege losses suffered by the plaintiff class.
- Next Steps: The case has been sent back to the District Court for further proceedings consistent with the summary order.
Outlook, Risks, and Management Commentary
Management Stance: The Company intends to defend against the remanded claims vigorously.
Financial Impact: The Company states it cannot reasonably predict the outcome of the proceedings or provide a reasonable estimate of the possible loss or range of loss, if any, at this time.
Key Facts for Investor Verification
- Verify the status of the remanded state common law claims in the District Court for the Eastern District of New York.
- Monitor future filings for any updates on the estimated financial impact or settlement discussions regarding the remanded claims.
- Note that securities law and unjust enrichment claims have been definitively dismissed by the appellate court.