SOURCE: Brower Piven, A Professional Corporation

May 17, 2011 18:42 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $250,000 From Investment in Gerova Financial Group Ltd. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the July 5, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - May 17, 2011) - 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 Gerova Financial Group Ltd. ("Gerova" or the "Company") (NYSE: GFC) during the period between January 8, 2010 and February 23, 2011, 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 July 5, 2011 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.

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 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 Chief Executive Officer, defendant Gary Hirst and CFO Michael Hlavsa. According to the complaint, after, 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, and after, on February 10, 2011, 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. The value of Gerova's stock declined significantly. Also according to the complaint, after, on February 23, 2011, the NYSE halted trading of the Company's shares at $5.28 citing the need for "additional information relative to operations, management restructuring, and business plans." Gerova's shares were delisted from the NYSE.

If you have suffered a net loss for all transactions in Gerova Financial Group Ltd. 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 60 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