{"id":1004107377,"date":"2014-11-12T12:31:32","date_gmt":"2014-11-12T20:31:32","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004107377"},"modified":"2022-12-08T13:24:16","modified_gmt":"2022-12-08T21:24:16","slug":"arcp-sues-rcs-for-canceling-700m-cole-deal","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/","title":{"rendered":"ARCP Sues RCS for Canceling $700M Cole Deal"},"content":{"rendered":"

By Gail Kalinoski, Contributing Editor<\/em><\/p>\n

\"Michael<\/a>

Michael Weil, RCAP CEO<\/p><\/div>\n

American Realty Capital Properties, Inc. has fired the next shot in the battle with RCS Capital Corp. over its termination of the Cole Capital Partners L.L.C. $700 million deal by filing a lawsuit against RCS.<\/p>\n

The lawsuit, which was filed Tuesday in the Court of Chancery in Delaware, comes about a week after RCS announced it had canceled its planned acquisition of Cole Capital Partners and Cole Capital Advisors, Inc. from an affiliate of its sister company, ARCP. RCS pulled out of the deal several days after ARCP announced two top executives had resigned after admitting there were errors in its financial statements as recently as the second quarter. That news, along with the resignation of CFO Brian Block and Chief Accounting Officer Lisa McAllister, sent ARCP\u2019s stock plunging and also sent shares of RCS, which trades as RCAP, down as well.<\/p>\n

\u201cWe continue to believe that RCS\u2019s attempt to terminate the Purchase Agreement constitutes a breach of the Purchase Agreement. Under the circumstances, the independent members of the ARCP Board of Directors and ARCP had no choice but to file this litigation in order to preserve and to protect the interests of ARCP\u2019s shareholders under the Purchase Agreement,\u201d ARCP stated in a news release Wednesday.<\/p>\n

No other details were provided and as of press time, RCS had not responded to the litigation.
\nIn a Nov. 3 release, ARCP had stated it was informed of the deal termination by a letter received \u201cin the middle of the night.\u201d ARCP said then it believed RCS had no right and \u201cabsolutely no basis\u201d for canceling the transaction, which had been scheduled to close that week. ARCP said it \u201cconstitutes a breach of the agreement\u201d and that its management and independent board members were evaluating all alternatives.<\/p>\n

Both ARCP and RCS were founded by Nicholas Schorsch, who serves as chairman of ARCP and executive chairman of RCS.
\nBut RCS released its own statement Nov. 5 reiterating that RCS and ARCP are \u201ctwo separate and independent public corporations.\u201d The release noted that they have separate management teams and stressed that the \u201cemployees of ARCP accused of wrongdoing are not employed by RCAP.\u201d It also stated they have separate and distinct Boards of Directors \u201cwith no overlapping of independent directors.\u201d<\/p>\n

RCS said it had taken steps, including the termination of the Cole Capital and Cole Capital Advisors deal, \u201cto protect the interests of its shareholders and the ongoing prospects and continuing enterprise value of RCAP and its subsidiaries.\u201d<\/p>\n

ARCP, the largest single-tenant net-lease firm in the world, has been rocked by the fallout from the disclosure of the accounting errors. The Wall Street Journal and Bloomberg reported that the U.S. Securities and Exchange Commission were expected to investigate the accounting irregularities and Reuters reported that the REIT might also face a criminal investigation by the FBI and U.S. Attorney\u2019s Office in New York. Both Moody\u2019s and S&P stated they were putting ARCP\u2019s rating under review and several investment firms such as Ladenburg Thalmann suspended research coverage of the REIT.<\/p>\n","protected":false},"excerpt":{"rendered":"

American Realty Capital Properties has fired the next shot in the battle with RCS Capital Corp. over its termination of the Cole Capital Partners $700 million deal by filing a lawsuit against RCS.<\/p>\n","protected":false},"author":1068,"featured_media":1004104835,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21742],"tags":[],"class_list":["post-1004107377","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest"],"acf":[],"yoast_head":"\nARCP Sues RCS for Canceling $700M Cole Deal - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ARCP Sues RCS for Canceling $700M Cole Deal\" \/>\n<meta property=\"og:description\" content=\"American Realty Capital Properties has fired the next shot in the battle with RCS Capital Corp. over its termination of the Cole Capital Partners $700 million deal by filing a lawsuit against RCS.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2014-11-12T20:31:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T21:24:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/10\/MichaelWeil.png\" \/>\n\t<meta property=\"og:image:width\" content=\"358\" \/>\n\t<meta property=\"og:image:height\" content=\"336\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/\"},\"author\":{\"name\":\"Gail Kalinoski\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"headline\":\"ARCP Sues RCS for Canceling $700M Cole Deal\",\"datePublished\":\"2014-11-12T20:31:32+00:00\",\"dateModified\":\"2022-12-08T21:24:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/\"},\"wordCount\":537,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/10\\\/MichaelWeil.png\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/\",\"name\":\"ARCP Sues RCS for Canceling $700M Cole Deal - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/10\\\/MichaelWeil.png\",\"datePublished\":\"2014-11-12T20:31:32+00:00\",\"dateModified\":\"2022-12-08T21:24:16+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/10\\\/MichaelWeil.png\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/10\\\/MichaelWeil.png\",\"width\":358,\"height\":336,\"caption\":\"Michael Weil, RCAP\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/arcp-sues-rcs-for-canceling-700m-cole-deal\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"ARCP Sues RCS for Canceling $700M Cole Deal\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\",\"name\":\"Gail Kalinoski\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2023\\\/04\\\/Gail-Kalinoski-headshot.jpeg?w=86\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2023\\\/04\\\/Gail-Kalinoski-headshot.jpeg?w=86\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2023\\\/04\\\/Gail-Kalinoski-headshot.jpeg?w=86\",\"caption\":\"Gail Kalinoski\"},\"description\":\"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/gail-kalinoski\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"ARCP Sues RCS for Canceling $700M Cole Deal - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/","og_locale":"en_US","og_type":"article","og_title":"ARCP Sues RCS for Canceling $700M Cole Deal","og_description":"American Realty Capital Properties has fired the next shot in the battle with RCS Capital Corp. over its termination of the Cole Capital Partners $700 million deal by filing a lawsuit against RCS.","og_url":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2014-11-12T20:31:32+00:00","article_modified_time":"2022-12-08T21:24:16+00:00","og_image":[{"width":358,"height":336,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/10\/MichaelWeil.png","type":"image\/png"}],"author":"Gail Kalinoski","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/"},"author":{"name":"Gail Kalinoski","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"headline":"ARCP Sues RCS for Canceling $700M Cole Deal","datePublished":"2014-11-12T20:31:32+00:00","dateModified":"2022-12-08T21:24:16+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/"},"wordCount":537,"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/10\/MichaelWeil.png","articleSection":["News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/","url":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/","name":"ARCP Sues RCS for Canceling $700M Cole Deal - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/10\/MichaelWeil.png","datePublished":"2014-11-12T20:31:32+00:00","dateModified":"2022-12-08T21:24:16+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/10\/MichaelWeil.png","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/10\/MichaelWeil.png","width":358,"height":336,"caption":"Michael Weil, RCAP"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/arcp-sues-rcs-for-canceling-700m-cole-deal\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"ARCP Sues RCS for Canceling $700M Cole Deal"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57","name":"Gail Kalinoski","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","caption":"Gail Kalinoski"},"description":"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/10\/MichaelWeil.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004107377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1068"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004107377"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004107377\/revisions"}],"predecessor-version":[{"id":1004531192,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004107377\/revisions\/1004531192"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004104835"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004107377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004107377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004107377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}