WILMINGTON, Del., Jan. 13, 2015 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announced today that a securities fraud class action lawsuit has been filed on behalf of shareholders of RCS Capital Corporation (NYSE:RCAP) ("RCS Capital" or the "Company") that held shares between February 12, 2014 and October 31, 2014. The case was filed in the United States District Court, Southern District of New York, Case No. 14-cv-10136. A copy of the complaint is available upon request from Andrews & Springer LLC.
If you are a current RCS Capital shareholder and would like to join the class action, please visit our website or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
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.
According to the lawsuit, filed on December 29, 2014, RCS Capital misled shareholders and failed to disclose the following: (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, announced a $23 million accounting error that was intentionally not corrected. As reported by the Wall Street Journal, the error involved a subsequent cover-up and led to the resignation of two senior executives. This news has now prompted a criminal investigation by the FBI.
On November 3, 2014, RCS announced that its agreement with ARCP to acquire Cole Capital was officially terminated. The same day, RCS Capital also announced the termination of certain advisory agreements between RCS Capital and five non-traded REITs, advised and financed by Cole Capital. After this news was disclosed, RCS Capital's share price fell more than 16%.
On December 4, 2014, RCS Capital announced that it settled a lawsuit with ARCP for $60 million. On December 15, 2014, Nicholas Schorsch resigned as Chairman of ARCP and caused RCS Capital's share price to drop another 11%, further damaging shareholders.
Given this information, Andrews & Springer LLC is preparing a class action lawsuit as a result. If you currently own shares of RCS Capital and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/RCAP or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.