BOSTON, Oct. 31, 2014 /PRNewswire/ -- Block & Leviton LLP has filed a class-action lawsuit against American Realty Capital Properties, Inc. ("ARC" or the "Company") (NASDAQ:  ARCP) on behalf of investors who purchased or otherwise acquired ARC securities between May 6, 2013, and October 29, 2014.  The action alleges that ARC misled investors by, among other things, overstating calculations of adjusted funds from operations ("AFFO") in filings with the SEC.

In addition to purchasers of ordinary shares of ARC, the litigation specifically affects those who purchased or otherwise acquired securities pursuant or traceable to the Registration Statement in connection with the Company's public offering of common stock conducted on May 21, 2014.  Holders of shares of preferred stock are also affected by the pending litigation and are encouraged to contact counsel about their rights.

On October 29, 2014, ARC announced that certain of its previously issued financial statements and other financial information contained Forms 10-K and 10-Q for the fiscal periods ended March 31, 2014, and June 30, 2014, should no longer be relied upon.  In addition, ARC simultaneously announced that its CFO Brian Block and Chief Accounting Officer Lisa McAlister resigned their positions and that the two were foregoing millions in expected future salary, options and incentive payments. 

The resignations and uncertainty of the Company's financial statements stemmed from an investigation of the Audit Committee of ARC's Board of Directors.  ARC stated that the errors were previously identified but intentionally not corrected, resulting in an overstatement of AFFO.  The Wall Street Journal reported that the SEC is investigating ARC's accounting irregularities. 

If you have are a holder of preferred stock in ARC, purchased shares of the Company in its May 2014 public offering, or have otherwise purchased or acquired ARC securities and have questions about your legal rights, would like a copy of the complaint or have information relevant to this lawsuit, please contact attorney Steven Harte of Block & Leviton LLP, www.blockesq.com, at (617) 398-5600 or at Steven@blockesq.com.  Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.

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Contact:         
BLOCK & LEVITON LLP
Steven Harte
(617) 398-5600
Steven@blockesq.com

SOURCE Block & Leviton LLP