(Bloomberg) -- RCS Capital agreed to pay American Realty Capital Properties $60 million to settle a lawsuit over the canceled sale of a unit, ARCP said in a statement today.
ARCP filed the suit in the Delaware Court of Chancery after RCS didnt complete an agreed purchase of shares in Cole Capital Partners and Cole Capital Advisors. ARCP and New York-based RCS will now unwind and terminate all arrangements between the two companies and their subsidiaries, according to the statement.
Our immediate plan is to stabilize Cole Capital, which we continue to believe is a valuable business, as we focus on creating long-term value and strengthening ARCPs position as the leading company in the net lease REIT industry, ARCP Chief Executive Officer David Kay said in the statement.
RCS, an owner of broker-dealers that sell Chairman Nicholas Schorschs real estate investment products, canceled its plan to buy the units for about $700 million after ARCP disclosed that errors in its accounting were deliberately concealed. ARCP, based in New York, sued last month, saying RCS improperly reneged on the deal.
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