SEC Accepts VEREIT Settlement Over Schorsch-Era Accounting Scandal

The Securities Exchange Commission has agreed to accept a settlement offer from Vereit Inc. (NYSE: VER), a publicly traded REIT formerly known as American Realty Capital Properties (ARCP), to settle charges stemming from the legacy company’s highly publicized 2014 accounting scandal.

The agreement, which includes paying an $8 million civil penalty, was first announced last November, pending approval by the SEC’s Commissioners.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital), including Brian Block, William Kahane, Michael Weil, and Peter Budko.

Block and former chief accounting officer Lisa McAlister were previously convicted of fraudulently inflating ARCP’s second quarter 2014 financials by $13 million. Block was later convicted and sentenced to 18 months in federal prison for his role, while McAlister cooperated with the prosecution.

After the accounting misdeed was revealed, ARCP’s market value dropped by more than $3 billion and Schorsch eventually resigned as executive chairman. ARCP then replaced its board members and senior management team and rebranded as Vereit – a blend of veritas, the Latin word meaning truth, and REIT.

In determining to accept the offer, the SEC said that it considered ARCP’s self-reporting, public disclosures, cooperation, and remediation in the wake of the scandal. In October 2014, ARCP’s audit committee “promptly self-reported” to the SEC and disclosed to investors that the company had inflated its AFFO and left the erroneous numbers uncorrected.

The SEC also indicated that ARCP’s audit committee continued its investigation and provided timely updates to the SEC, voluntarily produced compilations of documents and other information at the SEC’s request, disclosed relevant factual information, and facilitated making its employees available for interviews.

In addition, the SEC claims that ARCP undertook a series of remedial measures, including reforming policies, procedures, and replacing its senior executives, board of directors, and numerous other employees.

Vereit shares closed at $6.72 on Thursday.

Vereit owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S., with total real estate investments of $14.8 billion including approximately 3,900 properties and 89.5 million square feet.

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ARCP CFO Brian Block Ordered to Report to Federal Prison

Brian Block, long-time partner of AR Global’s Nicholas Schorsch and former chief financial officer of American Realty Capital Properties, will begin serving his 18-month sentence on August 10, 2020, according to an order issued by District Judge J. Paul Oetken, as first reported by Investment News.

The Second Circuit Court of Appeals recently upheld Block’s 2017 conviction of securities fraud and related charges after he intentionally filed doctored financial statements with the Securities and Exchange Commission.

Block requested that he be ordered to surrender to the Bureau of Prisons in 90 days due to the current state of emergency as a result of the COVID-19 pandemic. The government consented to his request, and he will be housed at the minimum-security prison camp at the Federal Correctional Institution at Fairton in New Jersey.

Block must surrender on August 10, 2020 by 2:00 p.m., and his 18-month sentence will be followed by three years of supervised release.

While serving as CFO of ARCP, a publicly traded real estate investment trust founded by Schorsch, Block participated in a scheme to manipulate the reported financial results of the company in various SEC filings made in July 2014.

Block and former chief accounting officer Lisa McAlister were charged with fraudulently inflating the company’s adjusted funds from operations by approximately $13 million to cover up a methodological error in calculating AFFO in prior quarters and to make it appear as though the company had met certain financial targets when it had not. McAlister cooperated with the prosecution as its key witness against Block and sentenced to time served and one year of supervised release.

Following the highly publicized 2014 accounting scandal, ARCP’s market value dropped by more than $3 billion and Schorsch resigned as executive chairman. The company replaced its board members and senior management team and rebranded as Vereit (NYSE: VER) – a blend of veritas, the Latin word for truth, and REIT.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital), including Block, William Kahane, Michael Weil, and Peter Budko.

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Appellate Court Upholds Securities Fraud Conviction of ARCP’s Brian Block

Last Thursday, the Second Circuit Court of Appeals upheld the conviction of Brian Block, long-time partner of AR Global’s Nicholas Schorsch and former chief financial officer of American Realty Capital Properties, who was convicted in November 2017 of securities fraud and related charges after he intentionally filed doctored financial statements with the Securities and Exchange Commission. Block was sentenced to 18 months in federal prison followed by three years of supervised release.

While serving as CFO of ARCP, a publicly traded real estate investment trust founded by Schorsch, Block participated in a scheme to manipulate the reported financial results of the company in various SEC filings made in July 2014.

Block and former chief accounting officer Lisa McAlister were charged with fraudulently inflating the company’s adjusted funds from operations by approximately $13 million to cover up a methodological error in calculating AFFO in prior quarters and to make it appear as though the company had met certain financial targets when it had not. McAlister cooperated with the prosecution as its key witness against Block and sentenced to time served and one year of supervised release.

In his argument to the appeals court, Block claimed that there was insufficient evidence for the jury to conclude that the manipulated numbers filed with the SEC were false. His attorneys argued that AFFO does not have an established industry definition, and there are no specific regulations or standards that relate to it, nor prescribe how it should be calculated.

The appellate court, however, determined that there was sufficient evidence introduced for a jury to find “beyond a reasonable doubt that Block’s AFFO reporting was false or misleading within the meaning of the securities laws.”

“We review challenges to the sufficiency of the evidence de novo, considering the totality of the evidence and drawing all permissible inferences in the government’s favor, and will affirm if any rational jury could have found the defendant guilty beyond a reasonable doubt,” the court’s ruling stated.

In addition to his conviction, Block also unsuccessfully appealed a March 19, 2019 opinion and order denying his motion for a new trial based on the government’s alleged failure to disclose impeachment information it became aware of during trial.

Following the highly publicized 2014 accounting scandal, ARCP’s market value dropped by more than $3 billion and Schorsch resigned as executive chairman. The company replaced its board members and senior management team and rebranded as Vereit (NYSE: VER) – a blend of veritas, the Latin word for truth, and REIT.

Late last year, Vereit agreed to pay an $8 million civil penalty to settle SEC charges stemming from the legacy company’s accounting fraud.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital), including Block, William Kahane, Michael Weil, and Peter Budko.

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VEREIT to Pay $8 Million to Settle SEC Investigation of Schorsch-Era Accounting Scandal

VEREIT, Inc. (NYSE: VER), a publicly traded REIT formerly known as American Realty Capital Properties (ARCP), has reached an agreement with the Securities Exchange Commission to settle charges stemming from the legacy company’s highly publicized 2014 accounting scandal. The agreement includes paying an $8 million civil penalty, which must be approved by the SEC’s Commissioners.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital), including Brian Block, William Kahane, Michael Weil, and Peter Budko.

Block and former chief accounting officer Lisa McAlister were previously convicted of fraudulently inflating ARCP’s second quarter 2014 financials by $13 million in a scandal that shook the industry. Block was sentenced to 18 months in federal prison for his role and is attempting to appeal his conviction, while McAlister cooperated with the prosecution.

After the accounting misdeed was revealed, ARCP’s market value dropped by more than $3 billion and Schorsch eventually resigned as executive chairman. ARCP then replaced its board members and senior management team and rebranded as Vereit – a blend of veritas, the Latin word meaning truth, and REIT.

Last month, the United States District Court for the Southern District of New York granted preliminary approval to settle two lawsuits involving the company, including Witchko v. Schorsch and a $1 billion class action. The court scheduled a hearing on January 21, 2020 to consider final approval of both settlements.

To settle the class action, Vereit has agreed to pay a total of $738.5 million, while AR Global and its principals, ex-chief financial officer Brian Block, and former auditor Grant Thornton are responsible for an additional $286.5 million.

Vereit has previously settled claims totaling $254.4 million, brought by entities that hold approximately 35.3 percent of its stock, including Vanguard Specialized Funds, BlackRock ACS US Equity Tracker Fund, Clearline Capital Partners, among others.

Vereit shares closed at $9.66 on Thursday.

VEREIT owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S., with total real estate investments of nearly $15 billion including approximately 3,900 properties and 90.7 million square feet.

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Court Grants Preliminary Approval to Settle $1 Billion Vereit/ARCP Class Action

Vereit Inc. (NYSE: VER), a publicly traded REIT formerly known as American Realty Capital Properties (ARCP), disclosed that during a hearing on Thursday, the United States District Court for the Southern District of New York granted preliminary approval to settle two lawsuits involving the company, including Witchko v. Schorsch and the $1 billion class action stemming from the legacy company’s highly publicized 2014 accounting scandal. The court scheduled a hearing on January 21, 2020 to consider final approval of both settlements.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital), including Brian Block, William Kahane, Michael Weil, and Peter Budko.

Block and former chief accounting officer Lisa McAlister were convicted of fraudulently inflating ARCP’s second quarter 2014 financials by $13 million. Block was sentenced to 18 months in federal prison for his role in the scandal and is attempting to appeal his conviction, while McAlister cooperated with the prosecution.

Vereit has agreed to pay a total of $738.5 million, while AR Global and its principals, ex-chief financial officer Brian Block, and former auditor Grant Thornton are responsible for an addition $286.5 million to settle the class action.

After the accounting misdeed was revealed, ARCP’s market value dropped by more than $3 billion and Schorsch eventually resigned as executive chairman. ARCP then replaced its board members and senior management team and rebranded as Vereit – a blend of veritas, the Latin word meaning truth, and REIT.

If the court grants final approval, the $1.025 billion class action settlement will resolve the claims by plaintiffs relating to the accounting disclosure made by ARCP in October 2014 and in March 2015 regarding the restatement of certain previously issued financials.

Vereit will pay $738.5 million, while former external manager AR Global and its principals will pay $225 million, former CFO Block is responsible for $12.5 million, and the firm’s auditor at the time of the scandal, Grant Thornton, is on the hook for $49 million.

Three additional derivative actions remain pending in courts other than the Southern District of New York. The company expects to seek dismissal of these actions based on the settlement of the derivative action Witchko v. Schorsch, which received preliminary approval by the SDNY court.

Vereit shares closed at $9.97 on Thursday.

Vereit has previously settled claims totaling $254.4 million, brought by entities that hold approximately 35.3 percent of its stock, including Vanguard Specialized Funds, BlackRock ACS US Equity Tracker Fund, Clearline Capital Partners, Eton Park Fund, HG Vora Special Opportunities Master Fund, Pentwater Equity Opportunities Master Fund, PIMCO Diversified Income Fund, Reliance Standard Life Insurance Co, and Twin Securities, Archer Capital Master Fund, Atlas Master Fund, Fir Tree Capital Opportunity Master Fund, and Cohen & Steers Institutional Realty Shares.

VEREIT owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S., with total real estate investments of $15 billion including approximately 4,000 properties and 90.6 million square feet.

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AR Capital and Schorsch to Settle SEC Charges for $60 Million

The Securities and Exchange Commission has charged AR Capital LLC, its founder Nicholas S. Schorsch, and its former CFO Brian Block with wrongfully obtaining millions of dollars in connection with two separate mergers between real estate investment trusts that were sponsored and externally managed by AR Capital, now known as AR Global.

The defendants agreed to settle the matter by paying a total of more than $60 million in disgorgement, prejudgment interest and civil penalties without admitting or denying the allegations in the complaint, which can be read here. The settlements are subject to court approval.

According to the SEC’s complaint, between late 2012 and early 2014, AR Capital arranged for American Realty Capital Properties Inc. (ARCP), a publicly-traded REIT, to merge with two publicly registered non-traded REITs: American Realty Capital Trust III Inc. and American Realty Capital Trust IV Inc.

Block was at the center of another ARCP accounting scandal back in October 2014 where he and a colleague were eventually found guilty of fraudulently inflating ARCP’s second quarter 2014 financial results to make it appear that the company had achieved certain financial metrics when it had not. He was sentenced to 18 months in prison and is currently attempting to appeal the verdict.

In the current complaint, the SEC alleges that AR Capital, Schorsch and Block inflated an incentive fee in both REIT mergers, and the fraudulent calculation allowed them to obtain approximately 2.92 million additional ARCP operating partnership units as part of their incentive-based compensation.

In addition, the complaint alleges that the defendants wrongfully obtained at least $7.27 million in unsupported charges from asset purchase and sale agreements that they entered into in connection with the mergers.

One such “charge” was supposedly for ARCP to purchase $5.8 million in furniture, fixtures, and equipment from AR Capital for post-merger operations, while the remainder was reimbursement to AR Capital of certain “unreimbursed expenses.”

“REIT managers and their professionals have an obligation to tell the truth when making disclosures to shareholders about their compensation,” said Marc P. Berger, director of the SEC’s New York regional office. “As we allege in our complaint, AR Capital and its partners Schorsch and Block failed to do so and benefitted themselves greatly at the expense of shareholders.”

The SEC’s complaint was filed in federal district court in Manhattan and charges AR Capital and Block with violating the antifraud provisions of various federal securities laws, and falsifying books and records of ARCP. The complaint charges Schorsch with antifraud violations, as well as books and records violations.

AR Capital, Schorsch, and Block have agreed to pay combined disgorgement and prejudgment interest on a joint-and-several basis of more than $39 million, which includes cash and the return of the wrongfully obtained ARCP operating partnership units; and imposes civil penalties of $14 million against AR Capital, $7 million against Schorsch, and $750,000 against Block.

This is not the first accounting misdeed involving Block, Schorsch, and their scandal-plagued empire. In October 2014, Block and Lisa McAlister, who served as ARCP’s chief accounting officer, manipulated the company’s second quarter 2014 financial results by inflating the company’s adjusted funds from operations, or AFFO, hours before filing the results with the Securities and Exchange Commission.

McAlister cooperated with the prosecution and testified that then-CEO Schorsch directed Block to manipulate and conceal the falsified numbers.

Federal prosecutors argued that Block’s bonuses were partially tied to the company meeting AFFO targets and his extensive stock ownership was motivation to keep the share price “propped up.”

Block owned 1.4 million shares of ARCP and could have potentially received a cash and equity bonus of up to eight times his $500,000 annual salary had certain targets been met. The value of AFFO constituted a 20 percent portion of Block’s bonus.

In June 2017, Block was convicted of securities fraud, filing false reports to the SEC, filing false certifications and conspiracy, and was sentenced to 18 months in prison, followed by three years’ supervised release, and a $100,000 fine. Block was denied a new trial and is attempting to appeal the verdict in the Second Circuit Court of Appeals.

Block was a founding partner of American Realty Capital, AR Capital’s predecessor, along with Schorsch, Michael Weil, Peter Budko and William Kahane.

Following the various scandals that commenced with the ARCP accounting cover-up for which Block was charged, the company formed AR Global – where Block, Schorsch, Weil, Budko and Kahane are all presumed to continue in their roles as partners.

Schorsch had not been named in any federal indictments regarding the ARCP affair or other AR Global-related scandals.

After the accounting fraud was revealed, ARCP’s market value dropped by more than $3 billion and Schorsch eventually resigned as executive chairman. In 2015, ARCP replaced its board members and senior management team and rebranded as Vereit Inc. (NYSE: VER) – a blend of veritas, the Latin word meaning truth, and REIT.

Multiple securities class action complaints were filed against the company and its officers in the United States District Court for the Southern District of New York. Vereit has now settled claims to the tune of $254.4 million, brought by entities that hold approximately 35.3 percent of its stock.

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Vereit Settles Additional ARCP-Related Lawsuits

Vereit Inc. (NYSE: VER), a publicly traded REIT formerly known as American Realty Capital Properties (ARCP), has entered into additional settlement agreements with shareholders stemming from the legacy company’s highly publicized 2014 accounting scandal where executives inflated the company’s quarterly financials by $13 million. ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital).

The shareholders have decided not to participate as class members in the class action pending in the United States District Court for the Southern District of New York after the shareholders’ counsel approached the company seeking a resolution of their potential claims.

The shareholders have agreed to release claims against Vereit related to the purchase or sale of the company’s securities during the period at issue in the lawsuit in exchange for $12.2 million. The settlement agreements do not contain any admission of liability, wrongdoing or responsibility by any of the parties.

Vereit has now settled claims to the tune of $254.4 million, brought by entities that hold approximately 35.3 percent of its stock. The company reached settlement agreements with Vanguard for $90 million in June 2018, eight plaintiffs for $85 million in October 2018, and another four plaintiffs for $42.5 million in October 2018. Most recently in February 2019, Vereit settled with an undisclosed number of shareholders for $15.7 million.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital) including William Kahane, Brian Block, Michael Weil, and Peter Budko. Block and former chief accounting officer Lisa McAlister were convicted of fraudulently inflating ARCP’s second quarter 2014 financials by $13 million. Block was sentenced to 18 months in federal prison for his role in the scandal and is attempting to appeal his conviction, while McAlister cooperated with the prosecution.

After the accounting misdeed was revealed, ARCP’s market value dropped by more than $3 billion and Schorsch eventually resigned as executive chairman. ARCP then replaced its board members and senior management team and rebranded as Vereit – a blend of veritas, the Latin word meaning truth, and REIT.

Multiple securities class action complaints were filed against the company and its officers in the United States District Court for the Southern District of New York.

Vereit previously settled with Vanguard Specialized Funds, BlackRock ACS US Equity Tracker Fund, Clearline Capital Partners, Eton Park Fund, HG Vora Special Opportunities Master Fund, Pentwater Equity Opportunities Master Fund, PIMCO Diversified Income Fund, Reliance Standard Life Insurance Co, and Twin Securities, Archer Capital Master Fund, Atlas Master Fund, Fir Tree Capital Opportunity Master Fund, and Cohen & Steers Institutional Realty Shares.

Vereit maintains the ability to pursue claims against third parties, including claims for contribution for amounts paid in the settlements.

Vereit shares opened at $8.28 and closed at $8.17 on Tuesday.

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The company has total real estate investments of $15.6 billion including approximately 4,000 properties and 95 million square feet.

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Brian Block Denied New Trial for ARCP Accounting Scandal

Brian Block, former chief financial officer of American Realty Capital Properties, was denied a new trial after being convicted of intentionally reporting false numbers in the company’s 2014 quarterly filings with the U.S. Securities and Exchange Commission.

Block’s June 2017 jury trial found him guilty on all counts, including one count of securities fraud, two counts of filing false reports to the SEC, two counts of filing false certifications and one count of conspiracy.

In November 2017, Judge J. Paul Oetken of the U.S. District Court for the Southern District of New York sentenced Block to 18 months in prison, followed by three years’ supervised release, and imposed a $100,000 fine and a $600 mandatory special assessment. Block is attempting to appeal the verdict in the Second Circuit Court of Appeals.

Block’s motion for a new trial centered on claims that the Justice Department failed to disclose certain impeachment information relating to one of their key witnesses Ryan Steel that it became aware of during the trial. Steel, the former director of financial reporting at ARCP, was granted immunity by federal prosecutors in exchange for his cooperation.

The undisclosed evidence pertained to a conversation Steel had in 2015 with ARCP executive, William Gribbin, who blew the whistle on ARCP to the SEC and also testified at Block’s trial.

During a deposition in a civil case in May 2018, nearly a year after Block’s trial, Steel was asked if Gribbin ever offered to share a portion of the financial award that he might receive for his SEC whistleblower program submission.

While “having a couple drinks at a bar,” Steel claims that Gribbin “referenced how bad he felt for me, that he couldn’t believe this happened to me, and that he would take care of me. He didn’t necessarily ever specify what that meant or bring it up again. So, there was maybe a discussion of that, but there has never been a true offer or follow-up.”

Block had not been made aware of this conversation between Steel and Gribbin previously, and the government represented that it had learned about the conversation from Steel on June 20, 2017―during the trial but after Steel had testified.

At a November 2018 evidentiary hearing, Gribbin testified that his offer to Steel was one of financial assistance; “I told him since he’s out of work, if I came into money I could help him out.” Steel declined the offer.

Block’s attorneys claim that the DOJ’s failure to disclose what it knew about the Steel-Gribbin conversation during the trial violated the prosecution’s duties and deprived Block of a fair trial. With that information, Block argues that his counsel could have impeached Steel with a potential financial incentive to incriminate him.

Judge Oetken concluded that although the information was impeachable, he claimed that “there is no reasonable probability that its disclosure would have made a difference in the verdict.”

Claiming that the impeachment effect of the testimony would have been relatively minor in the context of all the trial evidence, Judge Oetken said, “There are two overarching considerations that make it clear to the court that the verdict would have been the same if Steel had been impeached by evidence of his 2015 conversation with Gribbin. The first is that there was corroborating evidence of virtually every important element of Steel’s testimony. The second is that very little of that testimony was actually disputed by Block.”

Block was a founding partner of American Realty Capital, later known as AR Capital, along with chairman and CEO Nicholas Schorsch, Michael Weil, Peter Budko and William Kahane. Following the various scandals that commenced with the ARCP accounting cover-up for which Block was charged, the company formed AR Global – where Block, Schorsch, Weil, Budko and Kahane are all presumed to continue in their roles as partners.

Schorsch has not been named in any federal indictments regarding the ARCP affair or other AR Global-related scandals.

American Realty Capital Properties is a publicly traded real estate investment trust now known as Vereit (NYSE: VER), which has no ties to the legacy company.

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Vereit Reaches Settlement with Additional Shareholders

Vereit Inc. (NYSE: VER), a publicly traded REIT formerly known as American Realty Capital Properties (ARCP), has agreed to settle claims with additional shareholders stemming from the legacy company’s highly publicized 2014 accounting scandal. ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital).

The shareholders have decided not to participate as class members in the class action pending in the United States District Court for the Southern District of New York after the shareholders’ counsel approached the company seeking a resolution of their potential claims.

The shareholders have agreed to release claims against Vereit related to the purchase or sale of the company’s securities during the period at issue in the class action lawsuit in exchange for $15.7 million. The settlement agreements do not contain any admission of liability, wrongdoing or responsibility by any of the parties.

Vereit has now settled claims to the tune of $233.2 million, brought by entities that hold approximately 33.5 percent of its stock. The company reached settlement agreements with Vanguard for $90 million in June 2018, eight plaintiffs for $85 million in October 2018, and another four plaintiffs for $42.5 million in October 2018.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital) including William Kahane, Brian Block, Michael Weil, and Peter Budko. Block and former chief accounting officer Lisa McAlister were convicted of fraudulently inflating ARCP’s second quarter 2014 financials by $13 million. Block was sentenced to 18 months in federal prison for his role in the scandal and is attempting to appeal his conviction, while McAlister cooperated with the prosecution.

After the accounting misdeed was revealed, ARCP’s market value dropped by more than $3 billion and Schorsch eventually resigned as executive chairman. ARCP then replaced its board members and senior management team and rebranded as Vereit – a blend of veritas, the Latin word meaning truth, and REIT.

Multiple securities class action complaints were filed against the company and its officers in the United States District Court for the Southern District of New York.

Vereit previously settled with Vanguard Specialized Funds, BlackRock ACS US Equity Tracker Fund, Clearline Capital Partners, Eton Park Fund, HG Vora Special Opportunities Master Fund, Pentwater Equity Opportunities Master Fund, PIMCO Diversified Income Fund, Reliance Standard Life Insurance Co, and Twin Securities, Archer Capital Master Fund, Atlas Master Fund, Fir Tree Capital Opportunity Master Fund, and Cohen & Steers Institutional Realty Shares.

Vereit maintains the ability to pursue claims against third parties, including claims for contribution for amounts paid in the settlements.

Vereit shares opened at $8.21 and closed at $8.33 on Monday.

Vereit is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The company has a total asset book value of $14.1 billion including approximately 4,000 properties and 93.9 million square feet.

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Vereit to Settle Four ARCP Lawsuits for $42.5 Million

Vereit Inc. (NYSE: VER), a publicly traded REIT formerly known as American Realty Capital Properties (ARCP), has agreed to settle another batch of lawsuits for $42.5 million which stem from the legacy company’s highly publicized 2014 accounting scandal.

The four plaintiffs in the settlement include Archer Capital Master Fund, Atlas Master Fund, Fir Tree Capital Opportunity Master Fund, and Cohen & Steers Institutional Realty Shares.

Vereit has now settled claims to the tune of $217.5 million, brought by entities that hold approximately 31 percent of its stock. The company reached a settlement agreement with Vanguard for $90 million in June, and another earlier this month with eight plaintiffs for $85 million.

ARCP was founded by Nicholas Schorsch and his partners at AR Global (formerly AR Capital) including William Kahane, Brian Block, Michael Weil, and Peter Budko. Block and former chief accounting officer Lisa McAlister were convicted of fraudulently inflating ARCP’s second quarter 2014 financials by $13 million. Block was sentenced to 18 months in federal prison for his role in the scandal and is attempting to appeal his conviction, while McAlister cooperated with the prosecution.

After the accounting misdeed was revealed, ARCP’s market value dropped by more than $3 billion and Schorsch eventually resigned as executive chairman. ARCP then replaced its board members and senior management team and rebranded as Vereit – a blend of veritas, the Latin word meaning truth, and REIT.

Multiple securities class action complaints were filed against the company and its officers in the United States District Court for the Southern District of New York.

In the latest tranche of settlements, the four plaintiffs agreed to dismiss all claims against Vereit and the other defendants with prejudice in exchange for $42.5 million. The settlement agreements do not contain any admission of liability, wrongdoing or responsibility by any of the parties.

Vereit previously settled with Vanguard Specialized Funds, BlackRock ACS US Equity Tracker Fund, Clearline Capital Partners, Eton Park Fund, HG Vora Special Opportunities Master Fund, Pentwater Equity Opportunities Master Fund, PIMCO Diversified Income Fund, Reliance Standard Life Insurance Co, and Twin Securities.

Vereit’s shares closed at $7.37 on Monday.

Vereit is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The company has a total asset book value of $14.3 billion including approximately 4,000 properties and 94.6 million square feet.

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