The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP has commenced an investigation into potential wrongdoing at Gerova Financial Group, Ltd. (“Gerova”), including possible violations of federal securities laws and state law as alleged in a class action lawsuit recently brought on behalf of investors in Stillwater Funds who exchanged their investments for shares of Gerova on or around January 20, 2010 (the “Share Exchange”).
If you exchanged your investments in Stillwater Funds for shares of Gerova in the Share Exchange, you may move the Court for appointment as lead plaintiff by no later than May 24, 2011. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in this action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in this action.
Gerova shareholders who wish to learn more about Lieff Cabraser’s investigation and this action may visit Lieff Cabraser’s website at http://www.lieffcabraser.com/cases.php?CaseID=456 or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358.
Background on Gerova Financial Group Securities Class Litigation
The action, pending in the United States District Court for the Eastern District of New York against Gerova, certain of Gerova’s current and former officers and directors, and other defendants, alleges violations of Section 14(a) of the Securities Exchange Act of 1934 and state law. In December 2009, Gerova disseminated a Consent Solicitation to Stillwater Funds investors recommending that they approve a proposed business combination that would result in the transfer of all Stillwater assets to Gerova in exchange for restricted shares of Gerova that would later convert into Gerova common stock upon completion of an audit of Stillwater assets. The Consent Solicitation, however, was allegedly false and misleading because it misrepresented and omitted material adverse facts regarding the business combination and the parties involved in the transaction.
On January 18, 2011, Gerova announced that it had retained Kroll to investigate an investment advisory firm, Dalrymple Financial LLC, that had issued a report alleging that Gerova is a “shell game” and “likely fraudulent.” On this news, the price of Gerova stock fell $2.98 per share, or approximately 11 percent, to close at $24.32.
On February 10, 2011, Gerova announced that four members of its board of directors and its Chairman, President, and acting Chief Executive Officer (“CEO”) had resigned. In addition, on February 15, 2011, Gerova disclosed that Dennis Pelino had withdrawn his name from consideration as President and CEO of the company. Following these disclosures, the price of Gerova stock fell $9.31 per share, or approximately 59 percent, from its closing price on February 10, 2011 to close at $6.39 on February 16, 2011.
On February 23, 2011, the New York Stock Exchange halted trading in Gerova stock at $5.28 per share “pending the Company’s disclosure of additional information relative to its operations, management restructuring and business plans.”
About Lieff Cabraser
Lieff, Cabraser, Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Sharon M. Lee, 800-541-7358 (Media Inquiries Only)
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here