Lowenstein Sandler’s Securities Litigation group brought the American Realty Capital Properties (ARCP, n/k/a VEREIT) litigation to a successful end by settling the final two cases to the satisfaction of the firm’s investment fund clients. Lowenstein’s clients included 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).

The Lowenstein team included Lawrence M. Rolnick, Marc B. Kramer, Thomas E. Redburn, Jr., Sheila A. Sadighi, Michael J. Hampson, Richard A. Bodnar, Brandon Fierro, and Nicole Castiglione.