Block & Leviton LLP Announces That It Has Filed A Class Action Lawsuit With An Extended Class Period Against American Realty Capital Properties, Inc. For Violations Of The Federal Securities Laws
BOSTON, Oct. 30, 2014 /PRNewswire/ -- Block & Leviton LLP has filed a class-action lawsuit against American Realty Capital Properties, Inc. ("ARC" or the "Company") (NASDAQ: ARCP), alleging that ARC misled investors by, among other things, overstating calculations of adjusted funds from operations ("AFFO") in filings with the SEC. AFFO measures funds available for pass-through to investors and is a key metric for investors. The action is pending in the Southern District of New York, case no. 14-cv-8669 and is brought on behalf of investors who purchased or otherwise acquired ARC securities between May 6, 2013, through October 29, 2014.
On October 29, 2014, ARC announced that the previously issued financial statements and other financial information contained in its Form 10-K for the fiscal year ended December 31, 2013, and quarterly reports on Forms 10-Q for the fiscal periods ended March 31, 2014, and June 30, 2014, and the Company's earnings and other financial communications for these periods, should no longer be relied upon. In addition, ARC simultaneously announced that its CFO Brian Block and Chief Accounting Officer Lisa McAlister resigned their positions.
The resignations and uncertainty of the Company's financial statements stemmed from an investigation of the Audit Committee of ARC's Board of Directors. ARC stated that the errors were previously identified but intentionally not corrected, resulting in an overstatement of AFFO. The Wall Street Journal reported that the SEC is investigating ARC's accounting irregularities.
Shares of ARC plummeted approximately 30% within hours of the announcement, representing a loss of market capitalization of at least $2 billion.
If you wish to serve as a lead plaintiff, you must move the Court no later than December 29, 2014. As a member of the class, you may file a motion to serve as a lead plaintiff or take no action and you will remain an absent class member. If you have questions about your legal rights, would like a copy of the complaint or have information relevant to this lawsuit, please contact attorney Steven Harte of Block & Leviton LLP, www.blockesq.com, at (617) 398-5600 or at [email protected]. Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
This notice may constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven Harte
(617) 398-5600
[email protected]
SOURCE Block & Leviton LLP
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