The company formerly known as American Realty Capital Properties Inc., a real estate investment trust founded by Nicholas Schorsch and rocked by an accounting scandal five years ago, announced a $1 billion settlement. The company, now known as Vereit Inc., will pay $738.5 million of the class action settlement.
American Realty Capital, led by Mr. Schorsch, will pay $225 million, with the company’s former chief financial officer Brian Block, who was found guilty of securities fraud in 2017, paying $12.5 million. The auditor for the firm at the time of the scandal, Grant Thornton, will pay $49 million. Vereit has been embroiled in litigation for almost five years. In October 2014, the company, known by its former ticker symbol ARCP, admitted to an accounting error of $23 million, setting off a selling frenzy of the company’s stock.