BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of American Realty Capital Properties, Inc. (“American Realty” or the “Company”) (NASDAQ:ARCP) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by the Company concerning American Realty’s operations and financial performance.
American Realty owns, acquires and leases single-tenant, freestanding commercial real estate. The investigation is related to allegations that the Company misrepresented and/or failed to disclose that: (1) American Realty’s financial statements contained errors related to the improper classification of its adjusted funds from operations (AFFO), resulting in an overstatement of AFFO for the three months ended March 31, 2014; (2) the Company overstated AFFO for the three and six months ended June 30, 2014, and understated the Company’s net loss for the same period; (3) the Company lacked adequate internal controls over financial reporting; and (4) as a result of the foregoing, American Realty’s public statements were materially false and misleading at all relevant times.
On October 29, 2014, the Company announced that certain of its previously issued financial statements contained errors and should no longer be relied upon. In addition, the Company announced the resignation of its chief financial officer. Following this news, American Realty shares declined more than 36%, to a closing price of $9.90 per share on October 29, 2014, on extremely heavy volume.
If you purchased American Realty shares between May 6, 2013 and October 29, 2014, if you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.