NEW YORK, Oct. 30, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired American Realty Capital Properties, Inc. ("American Realty" or the "Company") (Nasdaq:ARCP) securities during the period between February 27, 2014 and October 28, 2014, inclusive, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) 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 and an overstatement of AFFO and an understatement of the Company's net loss for the three and six months ended June 30, 2014; (ii) American Realty lacked adequate internal controls over financial reporting; and (iii) 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 issued a press release and filed a Form 8-K with the SEC, announcing 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 CFO and Chief Accounting Officer who had key roles in preparing the Company's financial statements. On this news, shares of American Realty fell as much as $4.53, or over 36%, in intraday trading, on extremely heavy volume, to as low as $7.85 on October 29, 2014.
If you wish to serve as lead plaintiff, you must move the Court no later than December 29, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston