| Company: | RCS Capital Corporation |
| Ticker Symbol: | RCAP |
| Class Period: | Feb-12-14 to Oct-31-14 |
| Date Filed: | Feb-3-15 |
| Lead Plaintiff Deadline: | Apr-4-15 |
| Court: | Southern District of New York |
| Allegations: | |
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period that the financial statements of American Realty Capital Properties, Inc. ("ARCP") were materially false and misleading, that RCS Capital' announced acquisition of Cole Capital from ARCP was at serious risk due to the fraud being perpetrated at ARCP and that RCS Capital' revenue stream from its relationship with ARCP was in jeopardy as a result of the accounting scandal at ARCP.
According to the complaint, following an October 29, 2014 announcement by ARCP that its Audit Committee had determined that an "error"in accounting for adjusted funds from operations ("AFFO") had previously been identified within the ARCP, but was intentionally not corrected, and other AFFO and financial statement errors were intentionally made, resulting in an overstatement of AFFO and an understatement of the Company' net loss for the three and six months ended June 30, 2014 and that the previously issued financial statements and other financial information contained in the Company' annual report for the year ended 2013, quarterly reports for the periods ended March 31, 2014 and June 30, 2014, and the Company' earnings releases and other financial communications for these periods and that ARCP' Chief Financial Officer and Chief Accounting Officer had key roles in preparing the allegedly fraudulent financial statements and had resigned, following the revelation by the Wall Street Journal that the Federal Bureau of Investigation had opened a criminal investigation into ARCP, and following the Company' announcement on November 3, 2014 that it has terminated the previously disclosed definitive agreement to acquire Cole Capital from ARCP, the value or RCS Capital shares declined significantly.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
