COLUMBUS, Ohio (Legal Newsline) - 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 Dec. 30.
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.