In early January, 2011, Gerova was the subject of reports by a Forbes columnist and Dalrymple Finance LLC (an investment advisory firm that held a short position in Gerova) tying the company to individuals involved in fraud at other firms and suggesting market manipulation and diversion of company funds. The Forbes report is available here, and the Dalrymple report is available here.
On February 10, Gerova announced the resignation of the Chairman of its board of directors, four other board members and its acting CEO, and reported the appointment of a successor Chairman. On February 15, Gerova disclosed that the successor Chairman had withdrawn his name from consideration.
On February 23, the New York Stock Exchange halted trading in shares of Gerova, announcing that it was “evaluating both the need for further disclosure, as well as the overall suitability for continued listing of the Company’s securities.” In the month before the trading halt, Gerova’s shares had lost approximately 75% of their value.
Investors who purchased shares of Gerova at any time prior to February 23, 2011 may be able to assert claims for all or part of their losses.
Persons with information relating to possible financial misconduct at Gerova, and Gerova shareholders who have suffered losses on their investment, should contact the attorney listed below.