August 24, 2017

A New York federal judge on Thursday indicated that he was likely to approve the entire class period of a putative shareholder class action against American Realty Capital Properties Inc. but warned that no decision on certification is final until he puts it in writing.

 In a marathon hearing, U.S. District Judge Alvin K. Hellerstein indicated that the factors for approving the class period were met, including efficiency in the market in regards to ARCP stock.

“Intuitively, if things excite analysts and analysts excite price movement, there is a degree of efficiency in the market,” the judge said.

After having checked off all the requirements to establish the class period for common stock of ARCP, Judge Hellerstein said he agreed with the plaintiffs' expert and could see his way to certifying the class vis-à-vis common stock for the period from May 9, 2012, through Oct. 29, 2014.

“From all of this, I feel it’s appropriate with regard to common stock to certify the class for the entire period,” he said.

 The judge felt there was not “proof sufficient to go backwards in time” to include preferred stock in the certification, but he said there would be “time later in the case to fine-tune the class.”

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