VEREIT® Enters Into Settlement Agreements and Releases with Additional Shareholders
PHOENIX, Feb. 11, 2019 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER) announced today that on February 5, 2019 VEREIT, Inc. and VEREIT Operating Partnership, L.P. (collectively "VEREIT" or the "Company") entered into Settlement Agreements and Releases (the "Settlement Agreements") to settle claims with shareholders (the "Settling Shareholders") who have decided not to participate as class members in the class action pending in the United States District Court for the Southern District of New York, In re American Realty Capital Properties, Inc., Litigation, No. 1:15-mc-00040-AKH (the "Class Action"), after outside counsel representing the Settling Shareholders approached the Company seeking a resolution of the Settling Shareholders' potential claims. The claims at issue in the Class Action arose out of the disclosures made by the Company in October 2014 and March 2015 regarding its financial statements, which included the Company's March 2015 restatement of certain of its previously issued financial statements. Pursuant to the terms of the Settlement Agreements, the parties have agreed that the Settling Shareholders will release all claims related to the purchase or sale of the Company's securities during the period at issue in the Class Action and the Company will make payments to the Settling Shareholders totaling approximately $15.7 million in connection with the settlement and release of the claims. The Company maintains the ability to pursue claims against third parties, including claims for contribution for amounts paid in the settlements. The Settlement Agreements do not contain any admission of liability, wrongdoing or responsibility by any of the parties.
VEREIT is pleased to have reached settlements with these shareholders. Including the previously announced settlements with Vanguard Specialized Funds and other Vanguard funds, and twelve previously pending opt out litigations, the Company has now settled claims brought by plaintiffs holding shares of common stock and swaps referencing common stock representing approximately 33.5 percent of VEREIT's outstanding shares of common stock held at the end of the period covered by the various pending shareholder actions for a total of approximately $233.2 million.
There can be no assurance as to whether or how these settlements may affect any potential future resolution of any pending lawsuit, the timing of any such resolution, or the amount at which any other matter may be resolved.
About the Company
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has a total asset book value of $14.1 billion including approximately 4,000 properties and 93.9 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange. Additional information about VEREIT can be found on its website at www.VEREIT.com and through social media platforms such as Twitter and LinkedIn.
Forward-Looking Statements
Information set forth herein contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect the Company's expectations regarding future events and plans, and the resolution of pending litigation matters. Generally, the words "expects," "anticipates," "assumes," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions identify forward-looking statements. The forward-looking statements involve a number of assumptions, risks, uncertainties and other factors which are difficult to predict, may be beyond the Company's control and that could cause actual results to differ materially from those contained in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: risks associated with pending government investigations and litigations related to the Company's previously disclosed audit committee investigation; and the other factors contained in the Company's filings with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements contained in this press release whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.
SOURCE VEREIT, Inc.
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