RCS CAPITAL CORPORATION INVESTIGATION - Andrews & Springer LLC Opens Investigation On RCS Capital Corporation For Possible Securities Fraud Violations

WILMINGTON, Del.--()--Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating RCS Capital Corporation (“RCS Capital” or the “Company”) for possible violations of securities laws relating to the Company’s November 3rd announcement that it has terminated its agreement with American Realty Capital Properties Inc. (“ARCP) to acquire Cole Capital Partners LLC and Cole Capital Advisors Inc. (collectively “Cole Capital”).

On October 29, 2014, ARCP, a company run by RCS Capital’s Chairman of the Board of Directors Nicholas Schorsch, announced a $23 million accounting error that was intentionally not corrected. As reported by the Wall Street Journal, the error involved a subsequent cover-up and led to the resignation of two senior executives. Since this news, RCS Capital shares have declined 28.8%.

One month ago, on November 3, 2014, RCS announced that its agreement with ARCP to acquire Cole Capital was officially terminated. The same day, RCS Capital also announced the termination of certain advisory agreements between RCS Capital and five non-traded REITs, advised and financed by Cole Capital. After this news was disclosed, RCS Capital’s share price fell 16.57%.

On December 4, 2014, RCS Capital announced that it settled the lawsuit with ARCP for $60 million.

Given this information, Andrews & Springer LLC is preparing a class action lawsuit as a result. If you currently own shares of RCS Capital and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/RCAP or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.

Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.

Contacts

Andrews & Springer LLC
Craig J. Springer, Esq., 1-800-423-6013
cspringer@andrewsspringer.com

Contacts

Andrews & Springer LLC
Craig J. Springer, Esq., 1-800-423-6013
cspringer@andrewsspringer.com