Block & Leviton LLP Investigates American Realty Capital Properties Inc. After The Company Announces Non-Reliance on Previously Issued Financial Statements and Resignation of its Chief Financial Officer Because of Accounting Mistakes Intentionally Not Corrected
BOSTON, Oct. 29, 2014 /PRNewswire/ -- Shares of American Realty Capital Properties Inc. ("ARCP" or the "Company") (NASDAQ: ARCP) plunged precipitously in pre-market trading on news that the Company has announced that the previously issued financial statements and other financial information contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2014 and June 30, 2014, and the Company's earnings releases and other financial communications for these periods, should no longer be relied upon. In addition, ARCP announced that Brian Block, Chief Financial Officer ("CFO") of the Company, had resigned, being replaced by Michael Sodo.
In addition to Block's resignation, ARCP's Chief Accounting Officer Lisa McAlister also resigned, effective immediately, to be replaced by Gavin Brandon. The resignations and announcements regarding the uncertainty of the Company's financial statements stemmed from an investigation of the Audit Committee of the Board of Directors. According to the Company's press release, the "Audit Committee believes that this error was identified but intentionally not corrected, and … were intentionally made.…"
Shares of ARCP have plummeted in the pre-market trading, dropping approximately 18% before the markets even opened for normal trading. The purported accounting violations have resulted in a loss of approximately $2 billion in market value to investors.
Block & Leviton LLP is investigating the Company and certain of its officers and directors to determine how widespread any potential accounting violations extend and whether any insiders at the Company personally profited by the alleged accounting improprieties.
If you purchased ARCP securities prior to October 29, 2014, and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or at [email protected]. Confidentiality to any whistleblowers or other persons with information relevant to the investigation is assured.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.
This notice may constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte
(617) 398-5600
[email protected]
SOURCE Block & Leviton LLP
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