SOURCE: Kaplan Fox & Kilsheimer LLP

April 21, 2011 17:33 ET

Kaplan Fox Files Class Action Against Gerova Financial Group Ltd. on Behalf of Investors in Funds Managed by Stillwater Capital Partners

NEW YORK, NY--(Marketwire - Apr 21, 2011) - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit against Gerova Financial Group, Ltd. ("Gerova" or the "Company") (NYSE: GFC), Stillwater Capital Partners, Inc. and Stillwater Capital Partners LLC (together, "Stillwater") and others that alleges breach of fiduciary duties, breach of contract and other state law claims on behalf of investors in various funds managed by Stillwater and whose interest in any of those funds was liquidated in the transactions between Stillwater and Gerova consummated on January 20, 2010 (the "Stillwater Transactions"), and who (1) submitted a request for redemption of their Stillwater accounts before the Stillwater Transactions and have not been paid in full on those redemption requests, and/or (2) received Gerova Series A Preferred Stock, which converted into restricted, unregistered Gerova ordinary shares (the "Class").

The case is pending in the United States District Court for the Southern District of New York. A copy of the complaint may be obtained from Kaplan Fox or the Court.

The Complaint alleges that Defendants' breaches of fiduciary duties, breach of contract and unjust enrichment arise from their execution of the Stillwater Transactions, and their subsequent failure to register the Gerova shares received by the Class leaving Class members with restricted shares that they have been unable to trade while the price of Gerova common stock has plummeted due to Defendants' wrongful conduct from $23.26 on January 19, 2010, the day before the Stillwater Transactions closed, to $5.25 on February 24, 2011 when the NYSE halted trading in Gerova stock. Additionally, Defendants engaged in fraudulent conveyance by transferring substantial value out of the Company to a related entity while failing to pay out Class members' unsatisfied redemptions.

The funds at issue in this case are:

(1) Stillwater Asset Backed Fund, LP, a Delaware limited partnership;

(2) Stillwater Asset Backed Fund II, LP, a Delaware limited partnership;

(3) Stillwater WPB Venture Partners I LP, a Delaware limited partnership;

(4) Stillwater WPB Venture Partners II LP, a Delaware limited partnership;

(5) Stillwater Market Neutral Fund, LP, a Delaware limited partnership;

(6) Stillwater Market Neutral Fund II, LP, a Delaware limited partnership;

(7) Stillwater Matrix Fund LP, a Delaware limited partnership;

(8) Stillwater Real Estate Partners Fund, LP, a Delaware limited partnership;

(9) Stillwater Asset Backed Offshore Fund, Ltd., a Cayman Islands exempted company;

(10) Stillwater Asset Backed Fund SPV, a Cayman Islands exempted company;

(11) SABF II Onshore SPV, a Cayman Islands exempted company;

(12) Stillwater Market Neutral Fund Ltd., a Cayman Islands exempted company;

(13) Stillwater Loan Opportunities Fund, LLC, a Delaware limited liability company, and its sub fund, the Stillwater Loan Opportunities Fund (Series A);

(14) Stillwater Loan Opportunities Fund, SPC, a Cayman Islands exempted company registered as a segregated portfolio company, and its sub fund, the Stillwater Loan Opportunities Fund Segregated Portfolio (Series A); and

(15) Stillwater Market Neutral Fund III SPC, a Cayman Islands exempted company registered as a segregated portfolio company, and its sub fund, the Stillwater Matrix Segregated Portfolio.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

Contact Information

  • If you have any questions about the action, your rights, or your interests, please contact:
    Frederic S. Fox
    KAPLAN FOX & KILSHEIMER LLP
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: ffox@kaplanfox.com

    Irina Kobylevsky
    KAPLAN FOX & KILSHEIMER LLP
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: ikobylevsky@kaplanfox.com

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail address: lking@kaplanfox.com