A real estate investment trust is facing a lawsuit from a group of investors after a motion was filed by Ohio Attorney General Mike DeWine on Tuesday.
American Realty Capital Properties, Inc. faces a lawsuit after it allegedly misstated financial information, which led to financial losses for two company shareholders, the Ohio Public Employees Retirement System (OPERS) and the State Teachers Retirement System of Ohio. The company also allegedly covered up the accounting errors, after not properly stating the correct financial information. This resulted in around $3 billion in losses for the shareholders.
“The information American Realty Capital Properties provided pension fund managers was false, misleading, and purposefully hid accounting fraud,” DeWine said. “This fraud inflated the true value of the company, causing Ohio teachers and public employees to lose millions of hard-earned retirement dollars.”
The motion claims that the company provided improper financial statements and adjusted funds from operations were overstated. The company then allegedly covered up the false record.
“The OPERS Board of Trustees has been an active participant in securities litigation cases on behalf of our members and retirees,” OPERS Executive Director Karen Carraher said. “This is a fiduciary responsibility that we take very seriously, and it is consistent with past actions we have taken to encourage corporate governance reform and to seek compensation for unlawful behavior. We intend to continue an aggressive posture to protect the integrity of the marketplace for all investors and citizens of Ohio.”