Gerova Financial Group, Ltd.

Gerova Financial Group, Ltd.

UPDATE

On June 10, 2014, the District Court for the Southern District of New York entered an order approving the settlement of this litigation (see details below) as fair, reasonable and adequate, and in the best interests of the class.

UPDATE

On February 6, 2014, the District Court for the Southern District of New York preliminarily approved a settlement of the claims of all purchasers of the securities of Gerova Financial Group, Ltd. between January 8, 2010, and February 23, 2011, against the defendants in exchange for a payment of $1,372,000.

A copy of the order preliminarily approving the settlement and providing for notice is available for download at the link in the right sidebar.

A hearing to determine whether the settlement should be approved by the New York District Court as fair, reasonable and adequate will be held on June 9, 2014, at 4:30 PM, at the courthouse for the New York District Court at 500 Pearl Street, New York, NY 10007.

UPDATE

On September 26, 2011, the United States District Court for the Southern District of New York entered an order appointing Wohl & Fruchter LLP as Co-Lead Counsel for the Lead Plaintiff in the securities class action captioned Ali Arar v. Gerova Financial Group, Ltd., et al. A copy of the order may be downloaded using the link in the right sidebar.

The action alleges securities fraud at Gerova Financial Group, Ltd. (Gerova) (NYSE:GFC).

ORIGINAL

In early January, 2011, Gerova was the subject of reports by a Forbes columnist and Dalrymple Finance LLC (an investment advisory firm that held a short position in Gerova) tying the company to individuals involved in fraud at other firms and suggesting market manipulation and diversion of company funds. The Forbes report is available here, and the Dalrymple report is available here.

On February 10, Gerova announced the resignation of the Chairman of its board of directors, four other board members and its acting CEO, and reported the appointment of a successor Chairman. On February 15, Gerova disclosed that the successor Chairman had withdrawn his name from consideration.

On February 23, the New York Stock Exchange halted trading in shares of Gerova, announcing that it was “evaluating both the need for further disclosure, as well as the overall suitability for continued listing of the Company’s securities.” In the month before the trading halt, Gerova’s shares had lost approximately 75% of their value.

Investors who purchased shares of Gerova at any time prior to February 23, 2011 may be able to assert claims for all or part of their losses.

Persons with information relating to possible financial misconduct at Gerova, and Gerova shareholders who have suffered losses on their investment, should contact the attorney listed below.

Contact

Ethan Wohl
212.758.4097