ARCP Securities Litigation
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Welcome to the ARCP Securities Litigation Website

This website has been established to provide general information related to the American Realty Capital Properties, Inc. (“ARCP”) Securities Litigation.

This is a securities class action against ARCP, ARC Properties Operating Partnership L.P., AR Capital LLC, ARC Properties Advisors LLC, certain of ARCP’s and AR Capital’s officers, directors and current or former employees, Grant Thornton LLP, and the underwriters involved in each of the four securities offerings by ARCP during the Class Period (defined below), for Defendants’ alleged violations of the federal securities laws during the Class Period. The case is presently pending before United States District Judge Alvin K. Hellerstein and is styled In re American Realty Capital Properties, Inc. Litigation, Civil Action No. 1:15-mc-00040-AKH (the “Litigation”). On February 13, 2015, the Court appointed Teachers Insurance and Annuity Association of America as Lead Plaintiff pursuant to the requirements of the Private Securities Litigation Reform Act of 1995.

A plaintiff class (the “Class”) has been certified by the Court consisting of all persons who purchased or otherwise acquired ARCP Securities between February 28, 2013 and October 29, 2014 (the “Class Period”). Excluded from the Class are Defendants, members of the immediate families of each of the Defendants, any person, firm, trust, corporation, officer, director or other individual or entity in which any Defendant has a controlling interest or which is related to or affiliated with any Defendant and the legal representatives, agents, affiliates, heirs, successors-in-interest or assigns of any such excluded party.

The Court also has appointed the law firm of Robbins Geller Rudman & Dowd LLP as counsel for the Class.

If you or someone acting on your behalf purchased or otherwise acquired ARCP Securities during the Class Period, you may be entitled to participate in any benefits that may eventually be obtained for the Class as a result of this lawsuit.

Background and Description of the Litigation

ARCP (now VEREIT, Inc.) was a Real Estate Investment Trust (“REIT”) that owned single-tenant freestanding commercial properties and leased them to tenants. Throughout the Class Period, ARCP common stock traded on the NASDAQ under the symbol ARCP. Lead Plaintiff and the Class Representatives (“Plaintiffs”) allege that the Defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by making false and misleading statements or omitting to state facts necessary to make statements not misleading in public filings and other public statements during the Class Period. Specifically, among other things, Plaintiffs allege that the Company failed to properly report its Adjusted Funds From Operations (“AFFO”), a common measure of REIT performance, by improperly and artificially inflating AFFO, causing it to be overstated. Plaintiffs further allege that when the true facts regarding the alleged accounting fraud were revealed, that artificial inflation was removed from the price of ARCP Securities, causing the prices to drop and damaging members of the Class. Plaintiffs seek to recover money damages for members of the Class.

Each Defendant denies Plaintiffs’ allegations and asserts that they have valid defenses to each of Plaintiffs’ claims. Defendants filed answers to the complaint denying the allegations and asserting multiple defenses. Trial has been set to commence on January 21, 2020.

Additional Information

Although the information on this website is intended to assist you, it does not replace the information contained in the Notice of Pendency of Class Action which can be found and downloaded on the Case Documents page of this website. We recommend that you read the Notice and other relevant case documents carefully. You may also wish to read the answers to Frequently Asked Questions provided on this website. If you have not received a postcard notice and would like to confirm that you are on the mailing list for further notice mailings in this matter, please contact the Notice Administrator and request that a postcard notice be sent to you at your current mailing address.

Important Dates and Deadlines

Request Exclusion October 28, 2019