One of the premier US law firms in the areas of corporate, securities, and antitrust class litigation today [Feb. 28] announced it is investigating claims on behalf of investors in Bermuda-based Gerova Financial.
Gerova is a Bermuda reinsurance and financial services group with its head offices in Cumberland House on Victoria Street. The investigation by Pomerantz Haudek Grossman & Gross LLP concerns whether the company’s financials contain overvalued, illiquid and severely impaired assets to create an illusion of a large capital base to investors.
On January 18, 2011, Gerova announced it had hired security consultants Kroll to investigate the authors of a recent critical report issued by Dalrymple Financial LLC where it characterised Gerova as a “shell game” and “has many hallmarks of a classic fraud.” On this news, Gerova stock fell by $2.98 or 11 percent, to close at $24.32 on the New York Stock Exchange.
On February 10, 2011, Gerova announced that four board members and its president had resigned and that Dennis Pelino would be appointed president and CEO. However, on February 15, 2011, Mr. Pelino withdrew his name from consideration. On these revelations, Gerova shares fell $9.31 or 60 percent for four straight trading sessions, to close at $6.39 on February 16, 2011.
On February 23, 2011, Gerova stock was suspended by the NYSE at $5.28 “pending the Company’s disclosure of additional information relative to its operations, management restructuring and business plans.”
The Pomerantz Firm, with offices in New York, Chicago, and Washington, DC, pioneered the field of securities class actions. The firm fights for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct and has recovered numerous multimillion-dollar damages awards.
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