Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against KKR Financial Holdings, LLC
August 07 2008 - 7:14PM
Business Wire
Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin Stoia�)
(http://www.csgrr.com/cases/kkrfinancial/) today announced that a
class action has been commenced in the United States District Court
for the Southern District of New York on behalf of all persons who
acquired KKR Financial Holdings, LLC (�KFN�) (NYSE:KFN) common
stock pursuant or traceable to the Company�s false and misleading
Registration Statement and Prospectus (collectively, the
�Registration Statement�) issued in connection with its May 4, 2007
merger and share issuance (�Merger�). If you wish to serve as lead
plaintiff, you must move the Court no later than 60 days from
today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
plaintiff�s counsel, Darren Robbins of Coughlin Stoia at
800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If
you are a member of this class, you can view a copy of the
complaint as filed or join this class action online at
http://www.csgrr.com/cases/kkrfinancial/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member. The complaint charges KFN and
certain of its officers and directors with violations of the
Securities Act of 1933. KFN is a specialty finance company that
invests in multiple asset classes. The complaint alleges that the
Registration Statement was false and misleading in that it
misrepresented and/or omitted material facts, including: (a) the
problematic real-estate-related assets held by the Company were a
much bigger risk to the Company than the Registration Statement had
represented; (b) the Company�s capital would be insufficient given
the deterioration in its portfolio which would necessitate capital
preservation and the need to raise capital to the detriment of
common stockholders; and (c) the Company was failing to adequately
record loss reserves for its mortgage-related exposure, causing its
balance sheet and financial results to be artificially inflated.
During May, June and most of July 2007, KFN�s stock traded above
$25 per share. In late July, many mortgage-related companies� stock
prices declined, including KFN�s. Nevertheless, KFN�s stock closed
at $18.02 per share on August 13, 2007. Then, on August 15, 2007,
KFN issued a release which revealed that KFN would be selling $5.1
billion in mortgage backed securities at a loss. When this news was
revealed, KFN�s stock price collapsed to as low as $9.39 per share,
eventually closing at $10.52 per share, a decline from the prior
day of 31%. KFN shares currently trade for approximately $10 per
share, a 63% decline from the $26.90 per share at which they were
sold to plaintiff and the Class. Plaintiff seeks to recover damages
on behalf of all purchasers of KFN common stock pursuant or
traceable to the Company�s false and misleading Registration
Statement issued in connection with the Merger (the �Class�). The
plaintiff is represented by Coughlin Stoia, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud. Coughlin Stoia, a 190-lawyer
firm with offices in San Diego, San Francisco, Los Angeles, New
York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is
active in major litigations pending in federal and state courts
throughout the United States and has taken a leading role in many
important actions on behalf of defrauded investors, consumers, and
companies, as well as victims of human rights violations. The
Coughlin Stoia Web site (http://www.csgrr.com) has more information
about the firm.
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