Equinix, Inc. will have to defend against accusations that the data center real estate investment trust misclassified recurring capital expenditures, misleading shareholders, a federal judge ordered.
There is potential to demonstrate that Equinix and executives defrauded investors knowingly in having inflated its adjusted funds from operation, Judge Vince Chhabria said his the US District Court for the Northern District of California ruling on Monday.
Adjusted fund from operation, or AFFO, helps estimate a real estate investment trust’s value. A recurring capital expenditure decreases AFFO while a non-recurring one wouldn’t affect it.
Executives claimed that Equinix’s high AFFO came from ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.