NEW YORK, May 5, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a securities fraud class action against Gerova Financial Group Ltd. ("Gerova" or the "Company") (NYSE:GFC) and certain of its officers. The class action (11-cv-3081), pending in the United States District Court for the Southern District of New York, is on behalf of a class of purchasers of GFC securities between January 8, 2010 and February 23, 2011 (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Gerova securities during the Class Period and would like to serve as Lead Plaintiff for the class, you have until July 5, 2011 to seek appointment from the Court. A copy of the Complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at firstname.lastname@example.org or 888.476.6529, toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Complaint alleges that throughout the Class Period, defendants misrepresented or failed to disclose material adverse facts about the Company's business, operations, and prospects, including but not limited to the fact that a substantial portion of the assets it acquired pursuant to several transactions in January 2010 were impaired, illiquid, and worth far less than their recorded value; and that some of these acquisitions were with companies controlled by or affiliated with Gerova's top officers.
On January 10, 2011, Dalrymple Finance LLC published a report (the "Dalrymple Report"), critical of Gerova, labeling it as "a game of smoke and mirrors," and specifically questioning the valuation of the assets acquired in January, 2010. On this news, Gerova shares dropped $1.06 or nearly 4%, to close at $26.98.
On February 10, 2011, after the market closed, the Company announced the resignation of the Company's Chairman of the Board, Chief Executive Officer and Directors. On this news, Gerova shares declined by $9.31 or 59% for four consecutive trading sessions, to close at $6.39 on February 16, 2011.
On February 23, 2011, the NYSE halted the stock at $5.28 citing the need for "additional information relative to operations, management restructuring, and business plans." Gerova's shares were subsequently delisted. On April 18, 2011, the Company announced its intention to delist from the NYSE.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) email@example.com