STEVENSON, Md., Jan. 23, 2015 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of RCS Capital Corporation ("RCS Capital" or the "Company") (NYSE: RCAP ) securities during the period between February 12, 2014 and October 31, 2014, inclusive (the "Class Period"). Investors who wish to become proactively involved in the litigation have until February 27, 2015 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in RCS Capital securities purchased on or after February 12, 2014 and held through the revelation of negative information during and/or at the end of the Class Period, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html . You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company securities during the Class Period. Brower Piven also encourages anyone with information regarding the Company's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
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's announced acquisition of Cole Capital from ARCP was at serious risk due to the fraud being perpetrated at ARCP and that RCS Capital's 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's 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's annual report for the year ended 2013, quarterly reports for the periods ended March 31, 2014 and June 30, 2014, and the Company's earnings releases and other financial communications for these periods and that ARCP's 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's announcement on November 3, 2014 that it has terminated the previously disclosed definitive agreement to acquire Cole Capital from ARCP, the value of RCS Capital shares declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616
