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KKR Financial Holdings, LLC Summary: A class action has been commenced 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”).
Specifically, 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.
According to the Order signed by District Court Judge Gerard E. Lynch on January 27, 2009, the City of St. Clair Shores Police and Fire Retirement System is appointed as lead plaintiff and the law firm of Coughlin Stoia Geller Rudman & Robbins LLP is appointed lead counsel. On March 13, 2009, the lead plaintiff filed an Amended Class Action Complaint.
INDUSTRY CLASSIFICATION:
SIC Code: 6798
Sector: Financial
Industry: Investment Services
| COMPANY/ISSUER NAME: | KKR Financial Holdings, LLC |
| COMPANY/ISSUER TICKER: | KFN |
| COMPANY WEBSITE: | http://www.kkrfinancial.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Charter Township of Clinton Police and Fire Retirement System, et al. v. KKR Financial Holdings, LLC, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial | |||
| Type: Complaint | Date on the document: 8/7/2008 | ||
| Order | |||
| Type: Order Appointing LP/LC | Date on the document: 01/27/2009 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| Charter Township Of Clinton Police And Fire Retirement System, et al. v. KKR Financial Holdings, LLC, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Amended Complaint For Violation Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 03/13/2009 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 3/17/2009 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
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