NEW YORK--(BUSINESS WIRE)--Rosen Law Firm announces that a class action has been filed on behalf of purchasers of RCS Capital Corporation securities (“RCAP”) during the period from February 12, 2014 through October 31, 2014. The lawsuit seeks to recover investment losses for RCS Capital shareholders under the federal securities laws.
To join the RCS Capital class action, go to the website at http://www.rosenlegal.com/cases-467.html or call Laurence Rosen, Esq. or Phil Kim, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com or pkim@rosenlegal.com for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
The class action asserts that RCS Capital misled investors by failing to disclose: (i) that RCS Capital’s acquisition of Cole Capital from American Reality Capital Properties (“ARCP”) was at serious risk because an accounting fraud at ARCP of which RCS Capital’s Chairman, Nicholas Schorsch, should have been aware, (ii) RCS Capital’s expected revenue stream from its relationship with ARCP might be disrupted as a result of the accounting fraud at ARCP, and (iii) RCS Capital’s statements about its anticipated profitability and its plan to acquire Cole Capital were false and misleading.
On October 29, 2014, ARCP disclosed that its financial statements were materially inaccurate and must be restated. ARCP admitted that it knew of certain of the errors and intentionally did not correct them. This resulted in the resignation of ARCP’s Chief Financial Officer and Chief Accounting Officer and, according to news reports, a criminal investigation by the FBI.
As a result of ARCPs accounting scandal, RCS Capital terminated its agreement to acquire Cole Capital from ARCP. This news caused shares of RCS Capital to drop $2.72/share or more than 16%. And on November 7, 2014, news reports that Massachusetts regulators were investigating RCS Capital in connection with the ARCP accounting scandal caused RCS Capital’s shares to drop another $0.65/share. On December 15, 2014, Nicholas Schorsch resigned as Chairman of ARCP and this news caused RCS Capital’s share price to drop another $1.35/share, further damaging investors.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 27, 2015. If you wish to join the litigation and recover your losses go http://www.rosenlegal.com/cases-467.html or to discuss your rights or interests regarding this class action, please contact, Phillip Kim, Esq. Laurence Rosen, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at pkim@rosenlegal.com or lrosen@rosenlegal.com.
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
