American Realty Capital Properties’s $70 Million Final Settlement Agreement

Lowenstein Sandler and Milbank advised on the dispute

The American Realty Capital Properties (ARCP, n/k/a VEREIT) litigation ended by settling the final two cases to the satisfaction of the funds and accounts managed by Archer, Balyasny, Blackstone, Cohen & Steers, Fir Tree, Jet Capital, and Lakewood Capital.

The clients suffered significant financial losses after American Realty Capital Properties–a publicly traded real estate investment trust–disclosed in 2014 that its senior executives had committed accounting fraud. Lowenstein obtained significant settlements that maximized our clients’ recoveries. All told, the settlements totaled almost $70 million.

The hard-fought litigation against Milbank LLP spanned five years and was settled as final trial preparations were underway. The litigation team tirelessly advanced a host of novel, cutting-edge litigation strategies, including a new “intra-day” trading model for calculating damages, as well as previously untested claims for damages arising from derivative securities (swaps).

Lowenstein advised Archer, Balyasny, Blackstone, Cohen & Steers, Fir Tree, Jet Capital, and Lakewood Capital with Lawrence M. Rolnick (Picture), Marc B. Kramer, Thomas E. Redburn, Jr., Sheila A. Sadighi, Michael J. Hampson, Richard A. Bodnar, Brandon Fierro, and Nicole Castiglione.

Milbank advised Vereit, Inc. (formerly American Realty Capital Properties, Inc.) with a team led by Scott A. Edelman (Picture).

Involved fees earner: Richard Bodnar – Lowenstein Sandler LLP; Nicole Castiglione – Lowenstein Sandler LLP; Brandon Fierro – Lowenstein Sandler LLP; Michael Hampson – Lowenstein Sandler LLP; Marc Kramer – Lowenstein Sandler LLP; Thomas Redburn Jr. – Lowenstein Sandler LLP; Lawrence Rolnick – Lowenstein Sandler LLP; Sheila Sadighi – Lowenstein Sandler LLP; Scott Edelman – Milbank;

Law Firms: Lowenstein Sandler LLP; Milbank;

Clients: American Realty Capital Properties (ARCP); Archer Capital; Balyasny Asset Management; Blackstone; Cohen & Steers Inc; Fir Tree Partners; Jet Capital Investors LP; Lakewood Capital LLP;

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Author: Ambrogio Visconti