Apple REIT Nine, Inc. is a real estate investment trust (REIT) that primarily owns upscale hotels.

According to a notice of removal dated November 28, 2011, the Plaintiffs allege violations of the federal securities laws in connection with a securities offering.

The Plaintiffs stated that the securities sold in the Company were primarily used for various real estate and hospitality industry investments. Despite the effects of the financial crises on these types of investments, the Plaintiffs claim that the Company fraudulently used funds from other aspect of the business to artificially sustain its high dividend and share price. The Company also allegedly used these funds to pay large fees to related parties. The Plaintiffs claim that these activities deprive the shareholders in the Company from the ability to accurately evaluate the shares for redemption.

On December 19, 2011, the Plaintiff dismissed this case without prejudice pursuant to Rule 41 (a)(1)(A)(i) of the Federal Rules of Civil Procedure.