Investors in American Realty Capital Properties (ARCP), now known as Vereit, may be eligible for a massive settlement that could pay as much as 50% of damages. Given that the typical recovery is just 2%, this is great news for harmed ARCP investors.
What is this case about?
ARCP was an investment services firm founded by Nicholas Schorsch and William Kahane in 2007. In October 2014, its audit committee told the Securities and Exchange Commission that it had overstated its adjusted funds from operations, or AFFO, by $30 million. Worse, they admitted that the error was identified but not corrected. This announcement wiped out 35% of ARCP’s value in a week. Three top executives, including Schorsch, stepped down in one day. An audit investigation later found that the AFFO was intentionally overstated every year since 2011, the year ARCP went public.
Holy moly! Then what happened?
At least 14 class action complaints followed, as you may expect, as well as many private litigations. (The lead case is In re American Realty Capital Properties, Inc. Litigation, 1:15-mc-40, SDNY.) The first complaints appeared at the end of October, 2014, and now, nearly five years to the date of the original revelation by the ARCP audit committee, the judge has preliminarily approved the class action megasettlement for $1,025,000,000. The administrator will be sending notice packets and claim forms very soon.
Is “megasettlement” a word?
Shakespeare used it.
No, he did not. Still, that’s a lot of green, man. What qualifies?
Pruchasers of common stock, preferred stock, and debt securities during the class period (February 28, 2013 - October 29, 2014) may be eligible to participate.
What can CCC do for me?
CCC specializes in filing in complex litigations like this one, and can even file accurately and comprehensively for thousands of accounts at once. We handle administrator correspondence, deficiency reconciliation, and disbursement allocation. We also can review your potential claim and discuss the possibilities for opting-out of this settlement.
For investors with large losses, private litigation is an excellent way to recover funds that exceed the potential recovery in a class action. In fact, many of the private litigations against ARCP have already settled.
OK, then I will take my sweet time deciding whether to opt-out.
NO. Don’t. The exclusion deadline is October 28, 2019—and right now we are consulting with many of our clients and with plaintiff attorneys about private litigations, so if you are interested in a private litigation, please call us today.
Where can I find out more?
Please call us at 312-204-6970, or email us at firstname.lastname@example.org.
Quick facts about this settlement
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“I could go on and on, but bottom line, the fees being charged are much less than what I was spending in house to file and this is just one less thing I have to spend time trying to figure out how to complete on a consistent basis. I send the data on an annual basis to CCC and they take it from there. My clients are protected (if there is a class action, it is getting filed), the Bank is protected (we are meeting our fiduciary obligation by filing the claims) and…dealing with the CCC staff has been a very positive thing.”
John E. Thomason, The National Bank of Indianapolis
“We were spending countless hours on class action claims before we signed on with CCC in January. Matt Murray and their technical team ensured our data transmission was seamless and secure. We found everyone at CCC to be professional, courteous, and accommodating.”
Carie A. Minnie, Torrington Savings Bank
“Signing with CCC has made a huge difference. Before, it was horrible. We had to print thousands of pieces of paper, invite clients to come in and sit down with us to show them where to find the transactions, how to input them into the Proof of Claim forms…Now, we do some minor leg work up front when a new account is opened, and then upload our spreadsheet to CCC. And then, voila! It’s very nice to be able to tell our client, “You can shred that Proof of Claim form because CCC has it taken care of.”
Daniela Jones, Barnes Investment Advisory
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Debbie Kirby, Bank of the Ozarks