NEW YORK (TheStreet) -- American Realty Capital Properties (ARCP) shares closed trading down 4.04% to $8.07 in trading on Thursday after a former top executive, who was fired, filed a lawsuit against the company claiming that she was let go after speaking out against the company's alleged cover-up of fraudulent accounting practices.
The suit, by Lisa P. McAlister, the company's former chief accounting officer, alleges that the company defamed her in a press release a day after they fired her, saying that she was responsible for accounting and reporting irregularities after the company disclosed that accounting errors had intentionally been concealed to hide dismal financial results.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
McAlister claims that she was fired for telling ex-chairman Nicholas Schorsch and CEO David Kay that the company's new accounting practices were simply an attempt to cover up the fraudulent financial statements and that the press release following her termination was just a way for the company to shift blame to her.
Nicholas Schorsch is now chairman of RCS Capital (RCAP) , which closed trading down 15.31% today.
TheStreet Ratings team rates AMERICAN RLTY CAP PPTY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN RLTY CAP PPTY INC (ARCP) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."