September 30, 2019 / 10:23 PM / 2 months ago

Vereit, others reach $1.025 billion settlement over American Realty accounting

NEW YORK (Reuters) - Investors on Monday asked a Manhattan federal judge to approve a $1.025 billion class-action settlement with Vereit Inc and other defendants of claims that prior management inflated a key operating performance metric at the real estate investment trust, when it was known as American Realty Capital Properties.

The plaintiffs, including several TIAA-CREF funds, had accused American Realty of inflating adjusted funds from operations, culminating in a 2014 accounting scandal and investor losses when the truth was revealed.

Vereit said on Sept. 9 the settlement and a related investor accord would cost it roughly $765.5 million. Former American Realty Chief Executive Nicholas Schorsch and the accounting firm Grant Thornton were among the other defendants. The settlement requires approval by U.S. District Judge Alvin Hellerstein.

Reporting by Jonathan Stempel in New York; Editing by Matthew Lewis

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