Richmond-based real estate investment trust Apple Hospitality REIT Inc. said Friday that a shareholder has filed a lawsuit alleging that a planned merger with a sister REIT benefits company insiders.
The lawsuit was filed in U.S. District Court in Richmond on July 19 on behalf of James Quinn, an Apple REIT Ten shareholder and a resident of New York. It names 10 company directors and executives as defendants.
The lawsuit alleges that Apple Hospitality REIT’s planned $1.3 billion merger with its sister company Apple REIT Ten, announced in April, was the result of “a conflict-riddled process” that will enrich some managers and directors but shortchanges shareholders.
