Robbins Arroyo LLP: American Finance Trust, Inc. (AFIN) Misled Shareholders According to Class Action
SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Nov 15, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of American Finance Trust, Inc. (NasdaqGS: AFIN) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company’s October 2016 merger with American Realty Capital – Retail Centers of America, Inc. (“RCA”). American Finance Trust, Inc. (“AFIN”) is a publicly traded real estate investment trust focused on acquiring and managing a diversified portfolio of retail and distribution related commercial real estate properties in the U.S.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/american-finance-trust-inc/
American Finance Trust Accused of Filing Misleading Registration Statement
According to the complaint, AFIN’s registration statement issued in connection with the merger misled investors about the consequential negative financial impact to the merged companies and shareholders. Specifically, AFIN misled investors about changes to advisory agreements between AFIN and American Finance Advisors, Inc. and the advisory agreement between RCA and RCA advisers, which were conditioned upon approval of the merger. When AFIN filed the registration statement on October 21, 2016 in connection with the merger, AFIN officials failed to disclose that externally managed real estate investment trusts such as AFIN incur higher advisory fees and trade at massive discounts. In addition, the registration statement omitted important information about AFIN’s inability to obtain a public listing of its stock in 2015 and 2016. When AFIN listed its stock for public trading in July 2018, the company’s stock plunged.
American Finance Trust Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20181115006109/en/
CONTACT: Leonid Kandinov
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 11/15/2018 07:30 PM/DISC: 11/15/2018 07:30 PM