Allied Capital Corporation - Securities Class Action

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Allied Capital Corporation Summary: The original class action complaint alleges Allied Capital is a principal investment firm specializing in buyouts, acquisitions, recapitalizations, note purchases, growth capital, and middle market investments. The firm also provides debt financing in the form of senior loans, second lien debt, subordinated debt, and unitranche facilities. The Company' Business Loan Express (BLX) subsidiary originates, sells and services primarily real estate-secured small business loans, and also provides small business loans which are guaranteed pursuant to the U.S. Small Business Administration's (SBA) Section 7(a) Guaranteed Loan Program. BLX is Allied Capital's second largest portfolio company, and in 2005 BLX provided approximately 10.0% of Allied Capital's total interest and related portfolio income. Throughout the Class Period, Defendants failed to disclose, among other things, that Allied Capital's BLX subsidiary fraudulently procured and provided SBA-backed Section 7(a) loans to borrowers who were ineligible to receive such loans. As a result, defendants misrepresented and failed to disclose to investors material adverse facts concerning Allied Capital's financial condition and prospects.

According to the Company’s FORM 10-Q For The Quarterly Period Ended June 30, 2009, on February 26, 2007, Dana Ross filed a class action complaint in the U.S. District Court for the District of Columbia in which she alleges that Allied Capital Corporation and certain members of management violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Thereafter, the court appointed new lead counsel and approved new lead plaintiffs. On July 30, 2007, plaintiffs served an amended complaint. Plaintiffs claim that, between November 7, 2005, and January 22, 2007, Allied Capital either failed to disclose or misrepresented information about its portfolio company, Business Loan Express, LLC. Plaintiffs seek unspecified compensatory and other damages, as well as other relief. The Company believes the lawsuit is without merit, and intends to defend the lawsuit vigorously. On September 13, 2007, the Company filed a motion to dismiss the lawsuit. A hearing was held on the motion to dismiss in April 2009.

On November 10, 2009, Judge Jack D. Shanstrom granted the defendants’ motion to dismiss the Plaintiff's First Amended Complaint. Judgment was entered in favor of the defendants.

INDUSTRY CLASSIFICATION:
SIC Code:
Sector: Financial
Industry: Misc. Financial Services

COMPANY/ISSUER NAME:	Allied Capital Corporation
COMPANY/ISSUER TICKER:	ALD
COMPANY WEBSITE:	http://www.alliedcapital.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Dana Ross, et al. v. Allied Capital Corporation, et al.

COURT: D. District Columbia	DOCKET NUMBER: 07-CV-00402
JUDGE NAME: Hon. Emmet G. Sullivan
DATE FILED: 02/26/2007	SOURCE:
CLASS PERIOD START: 03/01/2006	CLASS PERIOD END: 01/10/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Freeman, Wolfe & Greenbaum, P.A. 409 Washington Avenue Suite 300, Towson, MD, 21204 (voice) 410.321.8400, (fax) 410.321.8407, http://www.fglawoffice.com O'Rourke Katten & Moody 161 North Clark Street, Suite 2230, Chicago, IL, (voice) 312.849.2020, (fax) , info@okmlaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint For Breach Of Fiduciary Duty And Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 02/26/2007
Order
Type: Order Appointing LP/LC		Date on the document: 05/22/2007

REFERENCE COMPLAINT

Dana Ross, et al. v. Allied Capital Corporation, et al.

COURT: D. District Columbia	DOCKET NUMBER: 07-CV-00402
JUDGE NAME: Hon. Emmet G. Sullivan
DATE FILED: 07/30/2007	SOURCE:
CLASS PERIOD START: 11/07/2005	CLASS PERIOD END: 01/22/2007
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005 (voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com Glancy Binkow & Goldberg LLP (Los Angeles) 1801 Ave. of the Stars, Suite 311, Los Angeles, CA, 90067 (voice) (310) 201-915, (fax) (310) 201-916, info@glancylaw.com Glancy Binkow & Goldberg LLP (NY) 1430 Broadway, Suite 1603, New York, NY, 10018 (voice) 212.382.2221, (fax) 212.382.2221, info@glancylaw.com Schiffrin Barroway Topaz & Kessler, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7056, info@sbtklaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 4

DOCUMENTS FOR THE REFERENCE COMPLAINT
Amended Class Action Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 07/30/2007
Judgment in a Civil Case
Type: Other		Date on the document: 11/10/2009
Memorandum Opinion And Order
Type: Order		Date on the document: 11/10/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/10/2009

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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