“American Realty Capital Properties Hit by Lawsuit from Institutional Investors,” Investment News
January 26, 2015
New York City Retirement Systems, TIAA-CREF join group of investors alleging ARCP misrepresented the company's business, "engaged in a scheme to deceive the market"
New York City Retirement Systems and TIAA-CREF have joined a group of investors that allege American Realty Capital Properties, a real estate investment trust, and others violated federal securities laws.
The $158.7 billion pension fund and TIAA-CREF filed complaints in the U.S. District Court in New York last week, claiming that ARCP “made false and misleading statements by misrepresenting the company's business and prospects and engaged in a scheme to deceive the market and a course of conduct that artificially inflated prices of American Realty securities.”
Specifically, ARCP misstated its adjusted funds from operations, a measure of REIT performance, by about $23 million total in the first and second quarters of 2014, according to the New York City pension fund's filing.