SOURCE: Brower Piven, A Professional Corporation

January 20, 2010 13:14 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $75,000 From Investment in Kohlberg Capital Corporation to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the March 1, 2010 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - January 20, 2010) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Kohlberg Capital Corporation ("Kohlberg" or the "Company") (NASDAQ: KCAP) during the period between March 16, 2009 and December 24, 2009, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than March 1, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that management essentially ceased providing substantive information about the Company's valuation of its loan portfolio to its auditor, Deloitte & Touche LLP ("Deloitte"), on December 14, 2009; that significant unanswered and unfulfilled information requests by Deloitte to the Company remained outstanding; that Kohlberg had previously provided Deloitte a revised valuation of the Company's loan portfolio as of December 31, 2008, which reflected a material reduction in the fair value of the Company's loan portfolio investments as of that date, but which revisions had not been shown to certain Kohlberg board members as of December 15, 2009; and that the Company reported inflated earnings that violated Generally Accepted Accounting Principles by failing to properly account for the fair value of its investment portfolio under FASB Statement of Financial of Financial Accounting Standards No. 157 - Fair Value Measurements. According to the complaint, after, on December 15, 2009 Kohlberg announced that its financial statements for the fiscal year ended December 31, 2008 and the first two quarters of 2009 should no longer be relied upon due to issues regarding valuation of the Company's loan portfolio, and after, on December 24, 2009, Kohlberg filed with the SEC a letter it received from Deloitte in which Deloitte disagreed with many of Kohlberg's contentions in its recent disclosures and which stated that Deloitte believed the information supporting the fair values reflected in the Company's previously issued 2008 and interim financial statements were and continued to be incomplete and inaccurate, the value of Kohlberg's stock declined significantly.

If you have suffered a net loss for all transactions in Kohlberg Capital Corporation common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact