STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of American Realty Capital Properties Inc. (“American Realty” or the “Company”) (NASDAQ: ARCP) securities on the open market during the period May 6, 2013 through October 29, 2014 (the “Class Period”). Investors who wish to become proactively involved in the litigation, including those who acquired American Realty shares as a result of their ownership of Cole Real Estate Investment, Inc. (“Cole”), have until December 29, 2014 to seek appointment as lead plaintiff.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s, including extensive experience in claims against real estate investment trusts (“REITs”) such as American Realty. Brower Piven is currently representing, or has represented, plaintiffs in the following class actions involving American Realty: In re American Realty Capital Trust, Inc. S’holder Litig., No. 24-C-12-005306 (Balt. City Cir. Ct. 2012); Polage, et al., v. Cole, et al., Case No. 24-C-13-006665 (Balt. City. Cir. Ct. 2013; “Cole Litigation”); and Quaal v. American Realty Capital Trust III, et al., Index No. 650329/2013 (Supreme Ct. N.Y. Co.). The Cole Litigation asserts among others, claims that the board of directors of Cole breached its fiduciary duties to Cole stockholders by failing to maximize stockholder value in connection with American Realty’s acquisition of Cole for a combination of stock and cash, which acquisition closed on or about February 7, 2014.
If you have suffered a loss from investment in American Realty securities purchased on or after May 6, 2013 and held through the revelation of negative information during and/or at the end of the Class Period, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at email@example.com or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company units during the Class Period. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that the Company overstated non-controlling interests in calculating adjusted funds from operations, a key metric that measures the Company's earnings and cash flow. According to the complaint, following the Company’s October 29, 2014 announcement disclosing that it had replaced its CFO and CAO after the Company's Audit Committee had identified financial statement errors in the release of first and second quarter 2014 financials attributable to the incorrect inclusion of certain amounts related to its non-controlling interests in its calculation of AFFO, that this error was identified but intentionally not corrected, and that the Audit Committee also stated that it was investigating the Company’s fiscal 2013 Form 10-K for potential errors, the value of American Realty’s shares declined significantly.
If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.