In Wake of Federal Criminal Probe, Investigation into ARCP Top Executives
In the wake of a reported federal criminal investigation into American Realty Capital Properties’ accounting practices, Schubert Jonckheer & Kolbe LLP today launched an investigation into the company’s top executives for possible misconduct.
According to Reuters, the FBI, in conjunction with the U.S. Attorney’s Office in New York, has opened a criminal probe into the company after American Realty disclosed that it had uncovered accounting errors and restated earnings. Both its chief financial officer and chief operating officer have resigned in the wake of the scandal.
Since the company’s disclosure last Wednesday, its stock price has fallen nearly 30%, wiping out approximately $4 billion in market value. On October 29, 2014 alone, ARCP stock dropped 19%.
The Schubert firm’s new investigation focuses on possible misconduct by the company’s top executives, specifically its officers and directors, including claims that they may have breached their fiduciary duties to the company in connection with federal securities laws.
The accounting irregularities were disclosed when American Realty’s Audit Committee determined that an error in accounting for adjusted funds from operations had previously been identified within the company but was intentionally not corrected, as well as other intentional accounting errors.
ARCP shareholders may have the option to pursue a shareholder derivative action through which shareholders may hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company.
If you currently own ARCP stock and wish to obtain additional information about the investigation and your legal rights, please fill out our form (at right) or contact Dustin Schubert either via email at email@example.com or by phone at 415-788-4220.