CINCINNATI, Feb. 28, 2011 (GLOBE NEWSWIRE) -- Attorney Advertising -- The law firm of Statman, Harris & Eyrich, LLC, which has significant experience in class actions, announced today that it is investigating Gerova Financial Corp. ("Gerova" or the "Company") (NYSE:GFC) for potential violations of state and federal law. Gerova operates as a property and casualty insurance and reinsurance company in Barbados, focusing primarily on life and annuity reinsurance.
The firm's investigation was triggered on January 18, 2011, when the Company announced that it had retained the services of the intelligence company Kroll to investigate a recent report issued by Dalrymple Financial LLC that characterized Gerova as a "shell game" and stated that the Company "has many hallmarks of a classic fraud." As a result of the Company's announcement, Gerova stock fell $2.98, or 11%, to close at $24.32 on January 18, 2011.
Later, on February 10, 2011, Gerova announced that four board members and the Company's president had resigned and that Dennis Pelino would be appointed president and CEO. However, Mr. Pelino withdrew his name from consideration five days later on February 15, 2011. As a result of this news, Gerova shares fell $9.31, or 60%, to close at $6.39 on February 16, 2011.
On February 23, 2011, the New York Stock Exchange halted trading in shares of Gerova stock "pending the Company's disclosure of additional information relative to its operations, management restructuring and business plans."
Shareholders who purchased Gerova stock between January 11, 2010 and February 23, 2011 may have a claim against the Company and are encouraged to contact attorney Melinda Nenning at (513) 345-8181, Ext. 3095 or mnenning@statmanharris.com for further information without any obligation or cost to you.
Statman, Harris & Eyrich, LLC has offices in Chicago, Illinois; Cincinnati, Ohio; and Dayton, Ohio. www.statmanharris.com