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![DailyREITBeat Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1092146031305867267.png) David Auerbach ⭕️ [@DailyREITBeat](/creator/twitter/DailyREITBeat) on x 3881 followers
Created: 2025-07-16 16:04:53 UTC

📉 Equinix Settles $41.5M Investor Lawsuit Over AFFO Misclassification 🧾

$EQIX @Equinix has agreed to a $XXXX million settlement to resolve allegations that it misclassified recurring capital expenditures, inflating a key REIT valuation metric: Adjusted Funds From Operations (AFFO).

🔍 Background:
* The proposed class includes investors who bought shares between May 3, 2019, and March 24, 2024.
* A March 2024 Hindenburg Research report alleged accounting manipulation inflated AFFO by $X billion since 2015.
* At issue: routine expenses like battery and chiller replacements allegedly categorized as non-recurring, avoiding AFFO deductions.
* The case survived dismissal earlier this year, with the court citing possible misalignment with Equinix’s own 2014 REIT AFFO framework.

⚖️ Settlement Details:
* Covers approx. XX% of recoverable investor damages.
* Equinix denies wrongdoing, stating the deal avoids prolonged litigation and will be funded by insurance.
* The company also pointed to an independent audit committee review, which found no financial misstatements.

🧑‍⚖️ Key Parties:
🧑‍💼 Plaintiff: Uniformed Sanitationmen’s Association Compensation Accrual Fund
🧑‍⚖️ Court: U.S. District Court, Northern District of California
⚖️ Legal counsel: Robbins Geller Rudman & Dowd LLP (Plaintiff)
🏛️ Davis Polk & Wardwell LLP (Equinix, Charles Meyers, Keith Taylor)

📌 Takeaway:  The case underscores how REIT-specific accounting metrics like AFFO can face intense scrutiny—especially when investor trust hinges on transparency in recurring vs. non-recurring expenses. Even with no admission of wrongdoing, the $42M resolution sends a message to public REITs on the importance of consistency, clarity, and internal alignment in financial reporting. 🏗️




XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1945514985209393279/c:line.svg)

**Related Topics**
[stocks](/topic/stocks)
[reit](/topic/reit)
[investment](/topic/investment)
[$415m](/topic/$415m)
[$eqix](/topic/$eqix)
[stocks real estate](/topic/stocks-real-estate)

[Post Link](https://x.com/DailyREITBeat/status/1945514985209393279)