{"id":18279,"date":"2019-09-12T15:22:02","date_gmt":"2019-09-12T20:22:02","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=18279"},"modified":"2019-09-16T15:23:50","modified_gmt":"2019-09-16T20:23:50","slug":"american-realty-capital-properties-to-pay-investors-1b","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/american-realty-capital-properties-to-pay-investors-1b\/","title":{"rendered":"American Realty Capital Properties to Pay Investors $1B"},"content":{"rendered":"

Nicholas Schorsch\u2019s former real estate investment trust (REIT)<\/a> American Realty Capital Properties Inc. (ARCP)<\/a> has arrived at a $1B settlement with investors who sued over the company’s accounting scandal that led to inflated financial results five years ago. Now called Vereit, the REIT will pay $738.5M of the class action securities fraud settlement, while Schorsch\u2019s American Realty Capital (AR Capital) will pay $225M. American Realty Capital Property\u2019s ex-CFO Brian Block will pay $12.5M of the settlement. Meantime, Grant Thornton, the firm\u2019s auditor during the period of the scandal, will pay $49M.<\/p>\n

American Realty Capital Properties admitted to a $23M accounting error in late 2014. After ARCP restated its financials, investors sold their shares, causing a $3B drop in the REIT\u2019s value. At one point, ARCP held $20B in assets.<\/p>\n

Investors sued, accusing the REIT of incorrectly stating financials so as to spur acquisitions and inflate financial results. Two years ago, Block pleaded guilty to securities fraud related to the accounting misstatements.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Nicholas Schorsch\u2019s former real estate investment trust (REIT) American Realty Capital Properties Inc. (ARCP) has arrived at a $1B settlement with investors who sued over the company’s accounting scandal that led to inflated financial results five years ago. Now called Vereit, the REIT will pay $738.5M of the class action securities fraud settlement, while Schorsch\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":6445,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3804,3738,3759],"tags":[3497,3793,2814,3677,2768,2835],"class_list":["post-18279","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-class-action-lawsuits","category-investor-fraud","category-reits","tag-american-realty-capital-properties","tag-ar-capital","tag-arcp","tag-brian-block","tag-nicholas-schorsch","tag-vereit"],"yoast_head":"\nAmerican Realty Capital Properties to Pay Investors $1B | SSEK Law Firm<\/title>\n<meta name=\"description\" content=\"Nicholas Schorsch\u2019s former REIT, American Realty Capital Properties, has arrived at a $1B settlement with investors over the company's 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