Robbins LLP: American Realty Capital Properties, Inc. (ARCP) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of American Realty Capital Properties, Inc. (NASDAQGS: ARCP) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between February 27, 2014 and October 28, 2014. American Realty owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade creditworthy tenants.
American Realty Accused of Misstatements in Its Financial Reporting
According to the complaint, shares of American Realty fell $4.53, or over 36%, to as low as $7.85 per share on October 29, 2014, after the company revealed that an Audit Committee investigation found multiple errors in American Realty’s previous financial statements and that those statements should no longer be relied upon. Further, the Audit Committee noted that the errors had been identified but were intentionally not corrected while other financial statement errors were intentionally made. The announcement also revealed that American Realty’s Chief Financial Officer and Chief Accounting Officer had resigned.
The complaint further alleges that: (i) American Realty’s financial statements contained errors related to the improper classification of its adjusted funds from operations, resulting in an overstatement of AFFO for the three months ended March 31, 2014, and an understatement of the company’s net losses for the six months ended June 30, 2014; and (ii) the company lacked adequate internal controls over financial reporting.
American Realty Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
