NEW YORK, Feb. 25, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Gerova Financial Corp. ("Gerova" or the "Company") (NYSE:GFC) during the period from January 11, 2010 – February 23, 2011 (the "Class Period"). Such investors are advised to contact Rachelle R. Boyle at rrboyle@pomlaw.com.
Gerova is a Bermuda-based reinsurance and financial services group. The investigation 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 that it had hired Kroll to investigate the authors of a recent critical report issued by Dalrymple Financial LLC where it characterized Gerova as a "shell game" and "has many hallmarks of a classic fraud." On this news, Gerova stock fell $2.98 or 11 percent, to close at $24.32.
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% for four straight trading sessions, to close at $6.39 on February 16, 2011.
On February 23, 2011, Gerova stock was halted 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, 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. See www.pomerantzlaw.com.
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) rrboyle@pomlaw.com