News / Law
American Residential Properties Inc Allegedly Leaves Out Lawsuit from Filings to Hide from Shareholders
American Residential Properties Inc, is a sizeable REIT based in Scottsdale, Arizona that is currently being sued by Invision Capital Management for allegedly failing to pay rehab costs and several other claims.
Invision first filed against American Residential Properties Inc (ARPI) because ARPI stopped funding the acquisitions and the rehab costs. According to the suit, ARPI had committed to a combined portfolio of $40 million to acquire and rehab properties through Invision in what is called a triple net lease. After ARPI stopped funding the acquisitions and the rehab costs, ARPI then, allegedly, defaulted Invision and took over those portfolios based on a lack of enough tenant revenue to pay ARPI the required rent under the triple net lease arrangement.
After many failed attempts to negotiate a settlement, Invision claims it was forced to file a lawsuit against ARPI. In addition to a claim for rehab reimbursement, Invision filed eight other claims including unjust enrichment, breach of contract and fraud.
Due to the lawsuit, ARPI should be disclosing this information in their SEC filings where their shareholders can see it. However no mention of a lawsuit has yet to be found anywhere in the filings.
It should also be noted that ARPI has done this to at least one other company, Landsmith, with which they settled with for an undisclosed amount.
