Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against American Realty Capital Properties, Inc.

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/americanrealty/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of American Realty Capital Properties, Inc. (“American Realty”) (NASDAQ:ARCP) publicly traded securities during the period between February 27, 2014 and October 28, 2014 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 30, 2014. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/americanrealty/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges American Realty and certain of its officers and directors with violations of the Securities Exchange Act of 1934. American Realty is a real estate investment trust (“REIT”). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial results. Specifically, the Company failed to properly estimate its adjusted funds from operations (“AFFO”), a common measure of REIT performance that measures a trust’s net income, including write-downs, depreciation, and amortization, but not including profits or losses from the sale of property, resulting in the Company overstating its AFFO by $12 million for the fiscal period ended March 31, 2014 (“1Q 2014”) and by about $10.9 million for the fiscal period ended June 30, 2014 (“2Q 2014”). As a result of defendants’ false statements, American Realty securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $14.88 per share on March 4, 2014. This inflation permitted American Realty to complete an offering of 138 million shares of its stock at $12.00 per share in May 2014.

On October 29, 2014, before the market opened, American Realty filed a Form 8-K with the SEC and issued a press release announcing that the Company’s Form 10-K for its fiscal year ended December 31, 2013 and its Forms 10-Q for 1Q 2014 and 2Q 2014 should no longer be relied upon, and that the Company would be restating its audited consolidated financial results going back to 2013. The Company further admitted that its AFFO had been overstated for 1Q 2014 and 2Q 2014. As a result, the Company was re-evaluating its internal controls and procedures. Additionally, American Realty’s Form 8-K and press release announced the immediate resignations of its Chief Financial Officer and Chief Accounting Officer. As a result of these disclosures, the price of American Realty stock fell $2.38 per share to close at $10.00 per share on October 29, 2014, a one-day decline of 19% on volume of nearly 231 million shares.

Plaintiff seeks to recover damages on behalf of all purchasers of American Realty publicly traded securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest securities class action judgment. Please visit http://www.rgrdlaw.com for more information.