SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP reminds investors that they have until December 29, 2014 to file a motion seeking to be appointed lead plaintiff against American Realty Capital Properties, Inc. (NASDAQ:ARCP).
If you purchased American Realty securities between February 27, 2014 and October 28, 2014 (the "Class Period") we encourage you to contact our firm. The case is pending in the United States District Court for the Southern District of New York.
Additional Information about the Lawsuit:
American Realty owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade credit rated and other creditworthy tenants.
The complaint charges American Realty and certain of its officers and directors with violations of the Securities Exchange Act of 1934. American Realty is a real estate investment trust ("REIT"). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's financial results. Specifically, the Company failed to properly estimate its adjusted funds from operations ("AFFO"), a common measure of REIT performance that measures a trust's net income, including write-downs, depreciation, and amortization, but not including profits or losses from the sale of property, resulting in the Company overstating its AFFO by $12 million for the fiscal period ended March 31, 2014 and by about $10.9 million for the fiscal period ended June 30, 2014. As a result of defendants' false statements, American Realty securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $14.88 per share on March 4, 2014. This overstatement permitted American Realty to complete an offering of 138 million shares of its stock at $12.00 per share in May 2014.
On October 29, 2014, before the market opened, American Realty filed a Form 8-K with the SEC and issued a press release announcing that the Company's Form 10-K for its fiscal year ended December 31, 2013 and its Forms 10-Q for 1Q 2014 and 2Q 2014 should no longer be relied upon, and that the Company would be restating its audited consolidated financial results going back to 2013. The Company further admitted that its AFFO had been overstated for 1Q 2014 and 2Q 2014. As a result, the Company was re-evaluating its internal controls and procedures. Additionally, American Realty's Form 8-K and press release announced the immediate resignations of its Chief Financial Officer and Chief Accounting Officer. As a result of these disclosures, the price of American Realty stock fell $2.38 per share to close at $10.00 per share on October 29, 2014, a one-day decline of 19% on volume of nearly 231 million shares.
Plaintiff seeks to recover damages on behalf of all purchasers of American Realty securities during the Class Period. If you wish to serve as a lead plaintiff, you must move the Court no later than December 29, 2014. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.