Press Release

VEREIT® Enters Into Settlement Agreements and Releases with Four Opt Out Plaintiffs

Company Release - 10/26/2018 4:30 PM ET

PHOENIX, Oct. 26, 2018 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER) announced today that on October 26, 2018, VEREIT, Inc. and VEREIT Operating Partnership, L.P. (collectively "VEREIT" or the "Company") entered into Settlement Agreements and Releases (the "Settlement Agreements") to settle previously disclosed litigations with four class action opt out entities serving as plaintiffs in the following actions pending in the United States District Court for the Southern District of New York:  Archer Capital Master Fund, L.P., et al. v. American Realty Capital Properties, Inc., et al, No. 1:16-cv-05471-AKH; Atlas Master Fund, Ltd., et al. v. American Realty Capital Properties, Inc., et al., No. 1:16-cv-05475-AKH; Fir Tree Capital Opportunity Master Fund, L.P., et al. v. American Realty Capital Properties, Inc., et al., No. 1:17-cv-04975-AKH; and Cohen & Steers Institutional Realty Shares, Inc., et al v. American Realty Capital Properties, Inc., et al., No. 1:18-cv-06770-AKH (collectively, the "Actions", and such plaintiffs collectively, the "Opt Out Plaintiffs").  The Opt Out Plaintiffs' claims arose out of the disclosures made by the Company in October 2014 and March 2015 regarding its financial statements, which included the Company's March 2015 restatement of certain of its previously issued financial statements. Pursuant to the terms of the Settlement Agreements, the parties have agreed that the Opt Out Plaintiffs will dismiss all claims against the Company and the other defendants with prejudice and the Company will pay the Opt Out Plaintiffs the sum of $42.5 million in connection with the settlement of the claims.  The Settlement Agreements contain mutual releases by both the Opt Out Plaintiffs and the Company, although the Company retains the right to pursue any and all claims against the other defendants in the Actions and/or third parties, including claims for contribution for amounts paid in the settlement.  The Settlement Agreements do not contain any admission of liability, wrongdoing or responsibility by any of the parties.

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. (PRNewsfoto/VEREIT, Inc.)

VEREIT is pleased to have brought the Actions to a conclusion.  Including the previously announced settlements with Vanguard Specialized Funds and other Vanguard funds, and eight additional opt out plaintiffs, the Company has now settled claims brought by plaintiffs representing approximately 31 percent of VEREIT's outstanding shares of common stock and swaps referencing common stock held at the end of the period covered by the various pending shareholder actions for a total of $217.5 million.

There can be no assurance as to whether or how these settlements may affect any potential future resolution of any other pending lawsuit, the timing of any such resolution, or the amount at which any other matter may be resolved.

About the Company

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has a total asset book value of $14.3 billion including approximately 4,000 properties and 94.6 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange. Additional information about VEREIT can be found on its website at www.VEREIT.com and through social media platforms such as Twitter and LinkedIn.

Forward-Looking Statements

Information set forth herein contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect the Company's expectations regarding future events. Generally, the words "expects," "anticipates," "assumes," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions identify forward-looking statements. The forward-looking statements involve a number of assumptions, risks, uncertainties and other factors which are difficult to predict, may be beyond the Company's control and that could cause actual results to differ materially from those contained in the forward-looking statements.  The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: risks associated with pending government investigations and litigations related to the Company's previously disclosed audit committee investigation; and the other factors contained in the Company's filings with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements contained in this press release whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.

 

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SOURCE VEREIT, Inc.

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